Budget Implementation Act, 2017, No. 1 (S.C. 2017, c. 20)

PART 3Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1

R.S., c. E-14Excise Act

• 42 (1) The Excise Act is amended by adding the following after section 170.1:

  Marginal note:Definition of inflationary adjusted year

  • 170.2 (1) In this section, inflationary adjusted year means 2018 and every year after that year.

  • Marginal note:Annual adjustments

    (2) Each rate of duty set out in Part II of the schedule applicable in respect of a hectolitre of beer or malt liquor is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

    • (a) the rate determined by the formula

      A × B

      where

      A

      is the rate of duty applicable to the hectolitre on March 31 of the inflationary adjusted year, and

      B

      is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

      C/D

      where

      C

      is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

      D

      is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and

    • (b) the rate of duty referred to in the description of A in paragraph (a).

  • Marginal note:Rounding

    (3) The adjusted rate determined under subsection (2) is to be rounded

    • (a) in the case of the rates set out in sections 1 and 2 of Part II of the schedule, to the nearest one-hundredth or, if the adjusted rate is equidistant from two consecutive one-hundredths, to the higher one-hundredth; and

    • (b) in the case of the rate set out in section 3 of Part II of the schedule, to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

  • Marginal note:Consumer Price Index

    (4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

    • (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;

    • (b) dividing the aggregate obtained under paragraph (a) by 12; and

    • (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.

• 43 (1) The schedule to the Act is amended by replacing the references after the heading “SCHEDULE” with the following:

  (Sections 135, 170, 170.1, 170.2, 185 and 200)

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.

• 44 (1) Parts II and II.1 of the schedule to the Act are replaced by the following:

  II. Beer

  • 1 Per hectolitre of beer or malt liquor containing more than 2.5% absolute ethyl alcohol by volume,

    • (a) $31.84; or

    • (b) if the rate referred to in paragraph (a) has been adjusted under subsection 170.2(2), the adjusted rate.

  • 2 Per hectolitre of beer or malt liquor containing more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume,

    • (a) $15.92; or

    • (b) if the rate referred to in paragraph (a) has been adjusted under subsection 170.2(2), the adjusted rate.

  • 3 Per hectolitre of beer or malt liquor containing not more than 1.2% absolute ethyl alcohol by volume,

    • (a) $2.643; or

    • (b) if the rate referred to in paragraph (a) has been adjusted under subsection 170.2(2), the adjusted rate.

  II.1 Canadian Beer

  • 1 Per hectolitre of the first 2 000 hectolitres of beer and malt liquor brewed in Canada,

    • (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II;

    • (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and

    • (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II.

  • 2 Per hectolitre of the next 3 000 hectolitres of beer and malt liquor brewed in Canada,

    • (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II;

    • (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and

    • (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II.

  • 3 Per hectolitre of the next 10 000 hectolitres of beer and malt liquor brewed in Canada,

    • (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II;

    • (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and

    • (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II.

  • 4 Per hectolitre of the next 35 000 hectolitres of beer and malt liquor brewed in Canada,

    • (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II;

    • (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and

    • (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II.

  • 5 Per hectolitre of the next 25 000 hectolitres of beer and malt liquor brewed in Canada,

    • (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II;

    • (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and

    • (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II.

  • 6 The rates determined under section 5 are to be rounded

    • (a) in the case of a rate determined under paragraph 5(a) or (b), to the nearest one-thousandth or, if the rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth; and

    • (b) in the case of a rate determined under paragraph 5(c), to the nearest ten-thousandth or, if the rate is equidistant from two consecutive ten-thousandths, to the higher ten-thousandth.

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.