Adjusted Rates of Excise Duty on Beer Effective April 1, 2024
Excise Duty Notice EDBN33
February 2024
Notice to the reader
On March 9, 2024, the Deputy Prime Minister and Minister of Finance announced that the federal government is proposing to cap the inflation adjustment for excise duty rates on beer at 2% for 2 additional years and to cut by half the excise duty rates on the first 15,000 hectolitres of beer brewed in Canada for 2 years.
As a result, the proposed capped rates of excise duty on beer effective April 1, 2024, are:
| Product | Adjusted rate effective April 1, 2024 |
|---|---|
| Beer containing not more than 1.2% absolute ethyl alcohol by volume | $3.007 per hectolitre |
| Beer containing more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume | $18.12 per hectolitre |
| Beer containing more than 2.5% absolute ethyl alcohol by volume | $36.23 per hectolitre |
| Percentage of absolute ethyl alcohol by volume in product | Annual production volume increments | Adjusted rate effective April 1, 2024 |
|---|---|---|
| Not more than 1.2% | 0 to 2,000 hectolitres | $0.15035 per hectolitre |
| Not more than 1.2% | 2,001 to 5,000 hectolitres | $0.3007 per hectolitre |
| Not more than 1.2% | 5,001 to 15,000 hectolitres | $0.6014 per hectolitre |
| Not more than 1.2% | 15,001 to 50,000 hectolitres | $2.1049 per hectolitre |
| Not more than 1.2% | 50,001 to 75,000 hectolitres | $2.5560 per hectolitre |
| More than 1.2% but not more than 2.5% | 0 to 2,000 hectolitres | $0.906 per hectolitre |
| More than 1.2% but not more than 2.5% | 2,001 to 5,000 hectolitres | $1.812 per hectolitre |
| More than 1.2% but not more than 2.5% | 5,001 to 15,000 hectolitres | $3.624 per hectolitre |
| More than 1.2% but not more than 2.5% | 15,001 to 50,000 hectolitres | $12.684 per hectolitre |
| More than 1.2% but not more than 2.5% | 50,001 to 75,000 hectolitres | $15.402 per hectolitre |
| More than 2.5% | 0 to 2,000 hectolitres | $1.8115 per hectolitre |
| More than 2.5% | 2,001 to 5,000 hectolitres | $3.623 per hectolitre |
| More than 2.5% | 5,001 to 15,000 hectolitres | $7.246 per hectolitre |
| More than 2.5% | 15,001 to 50,000 hectolitres | $25.361 per hectolitre |
| More than 2.5% | 50,001 to 75,000 hectolitres | $30.796 per hectolitre |
The Canada Revenue Agency will allow licensees to report and remit excise duty on beer at these proposed capped rates. However, licensees that choose to pay the duty in accordance with the proposed capped rates will be required to pay the difference in applicable duty between the proposed capped rates above and the uncapped rates below 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, 2024.
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, 2024, 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, 2024 |
|---|---|
| Beer containing not more than 1.2% absolute ethyl alcohol by volume | $3.087 per hectolitre |
| Beer containing more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume | $18.59 per hectolitre |
| Beer containing more than 2.5% absolute ethyl alcohol by volume | $37.19 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, 2024 |
|---|---|
| 0 to 2,000 hectolitres | $0.3087 per hectolitre |
| 2,001 to 5,000 hectolitres | $0.6174 per hectolitre |
| 5,001 to 15,000 hectolitres | $1.2348 per hectolitre |
| 15,001 to 50,000 hectolitres | $2.1609 per hectolitre |
| 50,001 to 75,000 hectolitres | $2.6240 per hectolitre |
| Annual production volume increments | Rate effective April 1, 2024 |
|---|---|
| 0 to 2,000 hectolitres | $1.859 per hectolitre |
| 2,001 to 5,000 hectolitres | $3.718 per hectolitre |
| 5,001 to 15,000 hectolitres | $7.436 per hectolitre |
| 15,001 to 50,000 hectolitres | $13.013 per hectolitre |
| 50,001 to 75,000 hectolitres | $15.802 per hectolitre |
| Annual production volume increments | Rate effective April 1, 2024 |
|---|---|
| 0 to 2,000 hectolitres | $3.719 per hectolitre |
| 2,001 to 5,000 hectolitres | $7.438 per hectolitre |
| 5,001 to 15,000 hectolitres | $14.876 per hectolitre |
| 15,001 to 50,000 hectolitres | $26.033 per hectolitre |
| 50,001 to 75,000 hectolitres | $31.612 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.
For information on how to make a general or technical enquiry on excise duties, go to Contact Information – Excise and Specialty Tax Directorate.
For information on how to request a ruling or interpretation related to excise duties, go to Requesting an Excise and Specialty Tax Ruling or Interpretation.
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