Excise duty rate increases for spirits and wine capped at 2% for 2026 and conditionally for 2027

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

The federal Excise Act, 2001 has been updated to extend the existing cap on annual inflation-driven duty rate increases for spirits and wine. For 2026, the rate adjustment factor ("B") is fixed at 1.02 — meaning duty rates will rise by no more than 2% regardless of actual inflation. For 2027, the same 2% ceiling applies only if the inflation-calculated figure would otherwise exceed it. These caps mirror the approach already in place for 2024 and 2025. Businesses that manufacture, import, warehouse, or sell spirits or wine in Canada should be aware that their excise duty costs are subject to these controlled increases for the next two adjustment years. No changes are made to the underlying duty structures or other product categories.

Who this affects: spirits manufacturers and distillers · wine producers and winemakers · excise warehouse licensees · importers of spirits and wine · alcohol distributors and retailers