21 March 2006

Excise Tax on Certain Vehicles

It has been brought to our attention that some importers may be unaware that excise tax is applicable on certain imported vehicles. The tax in question, according to part 6 of Schedule 1 of the Excise Tax, is reprinted at the end of this message.

We have contacted Transport Canada, CBSA, and the CRA, asking if they maintain a list of weights for specific vehicles. They do not, but did advise that the weight to be used when calculating the excise tax is the "curb" weight; this can be found readily in documents that accompany a vehicle.

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Part 6, Schedule I, of the Excise Tax Act

6. Automobiles, not including ambulances or hearses, namely,

(a) automobiles, other than station wagons and vans designed primarily for use as passenger vehicles, in excess of two thousand and seven kilograms (2 007 kg), in this section referred to as the "automobile mass limit", and

(b) station wagons and vans designed primarily for use as passenger vehicles in excess of two thousand two hundred and sixty-eight kilograms (2 268 kg), in this section referred to as the "wagon mass limit", at the following rates:

(c) for the portion of the mass thereof that exceeds the automobile mass limit or the wagon mass limit, as the case may be, but does not exceed the mass limit by more than forty-five kilograms (45 kg), thirty dollars,

(d) for the portion of the mass thereof that exceeds the aggregate of forty-five kilograms (45 kg) plus the automobile mass limit or the wagon mass limit, as the case may be, but does not exceed the aggregate plus forty-five kilograms (45 kg), forty dollars,

(e) for the portion of the mass thereof that exceeds the aggregate of ninety kilograms (90 kg) plus the automobile mass limit or the wagon mass limit, as the case may be, but does not exceed the aggregate plus forty-five kilograms (45 kg), fifty dollars, and

(f) for each forty-five kilograms (45 kg) or portion thereof that the mass thereof exceeds the aggregate of one hundred and thirty-five kilograms (135 kg) plus the automobile mass limit or the wagon mass limit, as the case may be, sixty dollars,

and, for the purposes of this section, the mass of an automobile, station wagon or van is the mass of a fully manufactured automobile, station wagon or van at the time of its sale by the manufacturer or the importer, as the case may be, including the mass, at that time, of all articles and materials the value of which is included in its sale price at the time of sale by him except that where at the time of the sale the automobile, station wagon or van includes an air conditioner as permanently installed equipment, the mass, as otherwise determined under this section, shall be reduced by twenty-nine kilograms (29 kg).