Adjusted Rates of Excise Duty on Beer Effective April 1, 2023
Excise Duty Notice EDBN32
March 2023
Notice to the reader
On March 28, 2023, the Minister of Finance tabled Budget 2023, which included a proposed amendment to the Excise Act. Consequently, the annual adjustment to the rates of excise duty on beer, which is usually based on changes to the Consumer Price Index, would instead be based on a lower rate.
As a result, the proposed adjusted rates of excise duty on beer effective April 1, 2023, are:
| Product | Proposed rate effective April 1, 2023 |
|---|---|
| Beer containing not more than 1.2% absolute ethyl alcohol by volume | $2.948 per hectolitre |
| Beer containing more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume | $17.76 per hectolitre |
| Beer containing more than 2.5% absolute ethyl alcohol by volume | $35.52 per hectolitre |
| Percentage of absolute ethyl alcohol by volume in product | Annual production volume increments | Proposed rate effective April 1, 2023 |
|---|---|---|
| Not more than 1.2% | 0 to 2,000 hectolitres | $0.2948 per hectolitre |
| Not more than 1.2% | 2,001 to 5,000 hectolitres | $0.5896 per hectolitre |
| Not more than 1.2% | 5,001 to 15,000 hectolitres | $1.1792 per hectolitre |
| Not more than 1.2% | 15,001 to 50,000 hectolitres | $2.0636 per hectolitre |
| Not more than 1.2% | 50,001 to 75,000 hectolitres | $2.5058 per hectolitre |
| More than 1.2% but not more than 2.5% | 0 to 2,000 hectolitres | $1.776 per hectolitre |
| More than 1.2% but not more than 2.5% | 2,001 to 5,000 hectolitres | $3.552 per hectolitre |
| More than 1.2% but not more than 2.5% | 5,001 to 15,000 hectolitres | $7.104 per hectolitre |
| More than 1.2% but not more than 2.5% | 15,001 to 50,000 hectolitres | $12.432 per hectolitre |
| More than 1.2% but not more than 2.5% | 50,001 to 75,000 hectolitres | $15.096 per hectolitre |
| More than 2.5% | 0 to 2,000 hectolitres | $3.552 per hectolitre |
| More than 2.5% | 2,001 to 5,000 hectolitres | $7.104 per hectolitre |
| More than 2.5% | 5,001 to 15,000 hectolitres | $14.208 per hectolitre |
| More than 2.5% | 15,001 to 50,000 hectolitres | $24.864 per hectolitre |
| More than 2.5% | 50,001 to 75,000 hectolitres | $30.192 per hectolitre |
Effective April 1, 2023, the Canada Revenue Agency will allow licensees to report and remit excise duty on beer at the lower rates. However, licensees that choose to pay the duty in accordance with the proposed new rates as of this date will be required to pay the difference in applicable duty should the enabling legislation not be enacted by Parliament.
This notice provides information about the adjusted rates of excise duty that will become payable on beer on or after April 1, 2023.
Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act. The information in this publication does not replace the law found in the Act and its regulations.
If this information does not completely address your particular situation, you may refer to the Act or relevant regulation, or contact your CRA regional excise office for additional information. The offices are listed at Contact Information – Excise and Specialty Tax Directorate.
General
Under the Excise Act, the rates of excise duty on beer are adjusted annually every April 1 based on changes to the Consumer Price Index.
Beer includes malt liquor.
The adjusted rates of excise duty that will become payable on beer on or after April 1, 2023, are listed in the tables below.
Beer that contains not more than 0.5% absolute ethyl alcohol by volume (that is, non-alcoholic beer) is not subject to excise duty.
Regular rates of excise duty on beer packaged in Canada
The regular rates of excise duty were determined in accordance with Part II of the Schedule to the Act. They apply to the following:
- beer packaged in Canada in excess of 75,000 hectolitres in a calendar year
- beer packaged in Canada that is either:
- imported beer
- produced from imported wort
| Product | Rate effective April 1, 2023 |
|---|---|
| Beer containing not more than 1.2% absolute ethyl alcohol by volume | $3.072 per hectolitre |
| Beer containing more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume | $18.51 per hectolitre |
| Beer containing more than 2.5% absolute ethyl alcohol by volume | $37.01 per hectolitre |
Reduced rates of excise duty on beer brewed by domestic brewers
The reduced rates of excise duty were determined in accordance with Part II.1 of the Schedule to the Act. They apply to the first 75,000 hectolitres of beer brewed in Canada (production volume limit) each calendar year by a licensed brewer and any person related to or associated with that brewer.
| Annual production volume increments | Rate effective April 1, 2023 |
|---|---|
| 0 to 2,000 hectolitres | $0.3072 per hectolitre |
| 2,001 to 5,000 hectolitres | $0.6144 per hectolitre |
| 5,001 to 15,000 hectolitres | $1.2288 per hectolitre |
| 15,001 to 50,000 hectolitres | $2.1504 per hectolitre |
| 50,001 to 75,000 hectolitres | $2.6112 per hectolitre |
| Annual production volume increments | Rate effective April 1, 2023 |
|---|---|
| 0 to 2,000 hectolitres | $1.851 per hectolitre |
| 2,001 to 5,000 hectolitres | $3.702 per hectolitre |
| 5,001 to 15,000 hectolitres | $7.404 per hectolitre |
| 15,001 to 50,000 hectolitres | $12.957 per hectolitre |
| 50,001 to 75,000 hectolitres | $15.734 per hectolitre |
| Annual production volume increments | Rate effective April 1, 2023 |
|---|---|
| 0 to 2,000 hectolitres | $3.701 per hectolitre |
| 2,001 to 5,000 hectolitres | $7.402 per hectolitre |
| 5,001 to 15,000 hectolitres | $14.804 per hectolitre |
| 15,001 to 50,000 hectolitres | $25.907 per hectolitre |
| 50,001 to 75,000 hectolitres | $31.459 per hectolitre |
For a listing of current and historical rates of excise duty on beer, go to Excise Duty Rates.
Further information
For all technical publications related to the Excise Act and its regulations, go to Excise duties technical information under the Excise Act.
To make a general or technical enquiry on excise duties or to request a ruling or interpretation related to excise duties, go to Contact Information – Excise and Specialty Tax Directorate.
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