Adjusted Rates of Excise Duty on Spirits and Wine Effective April 1, 2023
Excise Duty Notice EDN85
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, 2001. Consequently, the annual adjustment to the rates of excise duty on spirits and wine, 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 spirits and wine effective April 1, 2023, are:
- $0.337 per litre of spirits, for spirits containing not more than 7% absolute ethyl alcohol by volume
- $13.303 per litre of absolute ethyl alcohol, for spirits containing more than 7% absolute ethyl alcohol by volume
- $0.022 per litre of wine, for wine containing not more than 1.2% absolute ethyl alcohol by volume
- $0.337 per litre of wine, for wine containing more than 1.2% but not more than 7% absolute ethyl alcohol by volume
- $0.702 per litre of wine, for wine containing more than 7% absolute ethyl alcohol by volume
Effective April 1, 2023, the Canada Revenue Agency will allow licensees to report and remit excise duty on spirits and wine 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.
The purpose of this notice is to provide information about the adjusted rates of excise duty that will become payable on spirits and wine on or after April 1, 2023.
Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act, 2001. 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, 2001, the rates of excise duty on spirits and wine are adjusted annually every April 1 based on changes to the Consumer Price Index.
The adjusted rates of excise duty that will become payable on spirits and wine on or after April 1, 2023, are listed in the tables below.
Spirits and wine that contain not more than 0.5% absolute ethyl alcohol by volume (that is, non-alcoholic spirits and wine) are not subject to excise duty.
Spirits
The following rates of excise duty on spirits were determined in accordance with Schedule 4 to the Act.
| Product | Rate effective April 1, 2023 |
|---|---|
| Spirits containing not more than 7% absolute ethyl alcohol by volume | $0.351 per litre of spirits |
| Spirits containing more than 7% absolute ethyl alcohol by volume | $13.864 per litre of absolute ethyl alcohol |
Wine
The following rates of excise duty on wine were determined in accordance with Schedule 6 to the Act.
| Product | Rate effective April 1, 2023 |
|---|---|
| Wine containing not more than 1.2% absolute ethyl alcohol by volume | $0.023 per litre of wine |
| Wine containing more than 1.2% but not more than 7% absolute ethyl alcohol by volume | $0.351 per litre of wine |
| Wine containing more than 7% absolute ethyl alcohol by volume | $0.731 per litre of wine |
For a listing of current and historical rates of excise duty on spirits and wine, go to Excise Duty Rates.
Further information
For all technical publications related to the Excise Act, 2001 and its regulations, go to Excise duties technical information under the Excise Act, 2001
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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