An excise duty is a tax charged on certain Canadian products, including wine, spirits, and tobacco. Unlike Canadian GST, an excise duty is an indirect tax levied on the manufacturers, who include it in the price of the product. For example, when you buy a bottle of Canadian wine, a portion of the price is the excise duty that the producer has to pay to the government. To cover the high excise duty, Canadian businesses that produce and export excisable goods need to price their goods higher than exporters of similar goods in countries with low excise duty. For example, a bottle of Canadian wine may cost $50 in the United States, while a bottle of Scottish wine may cost only $20. This lowers the competitiveness of these Canadian businesses, as customers may choose to buy lower-priced products.
2017-01-10 00:00:002017-01-10 00:00:00https://quickbooks.intuit.com/ca/resources/taxes/excise-dutyTaxesEnglishFind out what an excise tax is and how a high excise duty may affect businesses that produce certain products.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/01/Store-manager-talks-with-customer-about-excise-duty.jpgWhat is Excise Duty?
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