Budget Implementation Act, 2017, No. 1 (S.C. 2017, c. 20)
Full Document:
Assented to 2017-06-22
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,
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,
3 Per hectolitre of beer or malt liquor containing not more than 1.2% absolute ethyl alcohol by volume,
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.
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