Excise duty rate tiers for small Canadian brewers restructured: first 2,000 hL tier rises from 5% to 10%, next 10,000 hL tier rises from 20% to 40%

Plain-language summary · AI-assisted · not legal advice

The reduced excise duty rates that apply to beer and malt liquor brewed in Canada by smaller producers have been restructured across the volume tiers in Schedule II.1. The first 2,000 hectolitre tier, which previously attracted a 5% rate, now attracts 10%. The tier covering the next 10,000 hectolitres, previously set at 20%, now carries a 40% rate. The second tier (next 3,000 hL) retains a 20% rate and the fourth tier (next 35,000 hL) remains at 70%. Previously announced amendments that were listed as 'not yet in force' for these three tiers have now been incorporated into the consolidated text, meaning they are treated as operative law. Canadian brewers who benefit from the small brewer reduced-rate schedule — particularly those producing up to roughly 15,000 hectolitres annually — should review how these revised rates affect their duty calculations.

Who this affects: small and mid-size Canadian brewers · beer and malt liquor producers · excise duty compliance officers · importers and distributors of Canadian beer