Excise Act, 2001

Marginal note:Definitions

• 123.1 (1) The following definitions apply in this section.

  inflationary adjusted year

  inflationary adjusted year means 2018 and every year after that year. (année inflationniste)

  reference year

  reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. (année de référence)

• Marginal note:Annual adjustments

  (2) Each rate of duty set out in Schedule 4 applicable in respect of a litre of absolute ethyl alcohol or in respect of a litre of spirits 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 litre of absolute ethyl alcohol or the litre of spirits, as the case may be, 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:Adjustment — 2023

  (2.1) In respect of the inflationary adjusted year that is 2023, the description of B in paragraph (2)(a) is deemed to be equal to 1.02.

• Marginal note:Adjustment — 2024

  (2.2) In respect of the inflationary adjusted year that is 2024, the description of B in paragraph (2)(a) is deemed to be equal to 1.02.

• Marginal note:Adjustment — 2025

  (2.3) In respect of the inflationary adjusted year that is 2025, if the amount determined for B in paragraph (2)(a) without reference to this subsection is greater than 1.02, the description of B in that paragraph is deemed to be equal to 1.02.

• Marginal note:Rounding

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

• Marginal note:Application of adjusted rate

  (5) If duties on spirits are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year.