Legislative Proposals Relating to the Excise Tax Act, the Excise Act and the Excise Act, 2001

Excise Tax Act

• 1 (1) Schedule I to the Excise Tax Act is amended by adding the following after section 9.1:

  9.2 If excise tax imposed under section 23 of the Act in respect of a quantity of unleaded gasoline, unleaded aviation gasoline, diesel fuel or aviation fuel becomes payable at a time that is after April 19, 2026 and before September 8, 2026, the following rules apply in determining the amount of that tax:

  • (a) the reference to "$0.10" in paragraph 9(a) is to be read as a reference to "$0.00"; and

  • (b) the reference to "$0.04" in section 9.1 is to be read as a reference to "$0.00".

• (2) Subsection (1) is deemed to have come into force on April 20, 2026.

Excise Act

• 2 (1) Section 170.2 of the Excise Act is amended by adding the following after subsection (2.3):

  • Marginal note:Adjustment — 2026

    (2.4) In respect of the inflationary adjusted year that is 2026, the description of B in paragraph (2)(a) is deemed to be equal to 1.02.

  • Marginal note:Adjustment — 2027

    (2.5) In respect of the inflationary adjusted year that is 2027, 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.

• (2) Subsection (1) is deemed to have come into force on April 1, 2026.

• 3 (1) Paragraphs 1(a) to (c) of Part II.1 of the schedule to the Act are amended by replacing "10%" with "5%".

• (2) Paragraphs 1(a) to (c) of Part II.1 of the schedule to the Act, as amended by subsection (1), are amended by replacing "5%" with "10%".

• (3) Subsection (1) is deemed to have come into force on April 1, 2026.

• (4) Subsection (2) comes into force on April 1, 2028.

• 4 (1) Paragraphs 2(a) to (c) of Part II.1 of the schedule to the Act are amended by replacing "20%" with "10%".

• (2) Paragraphs 2(a) to (c) of Part II.1 of the schedule to the Act, as amended by subsection (1), are amended by replacing "10%" with "20%".

• (3) Subsection (1) is deemed to have come into force on April 1, 2026.

• (4) Subsection (2) comes into force on April 1, 2028.

• 5 (1) Paragraphs 3(a) to (c) of Part II.1 of the schedule to the Act are amended by replacing "40%" with "20%".

• (2) Paragraphs 3(a) to (c) of Part II.1 of the schedule to the Act, as amended by subsection (1), are amended by replacing "20%" with "40%".

• (3) Subsection (1) is deemed to have come into force on April 1, 2026.

• (4) Subsection (2) comes into force on April 1, 2028.

Excise Act, 2001

• 6 (1) Section 123.1 of the Excise Act, 2001 is amended by adding the following after subsection (2.3):

  • Marginal note:Adjustment — 2026

    (2.4) In respect of the inflationary adjusted year that is 2026, the description of B in paragraph (2)(a) is deemed to be equal to 1.02.

  • Marginal note:Adjustment — 2027

    (2.5) In respect of the inflationary adjusted year that is 2027, 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.

• (2) Subsection (1) is deemed to have come into force on April 1, 2026.

• 7 (1) Section 135.1 of the Act is amended by adding the following after subsection (2.3):

  • Marginal note:Adjustment — 2026

    (2.4) In respect of the inflationary adjusted year that is 2026, the description of B in paragraph (2)(a) is deemed to be equal to 1.02.

  • Marginal note:Adjustment — 2027

    (2.5) In respect of the inflationary adjusted year that is 2027, 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.

• (2) Subsection (1) is deemed to have come into force on April 1, 2026.