Excise Taxes and Special Levies Notice
ET/SL-064
La version française du présent avis est intitulée Avis à
tous les fabricants et marchands en gros
d’automobiles titulaires de licence et aux importateurs
d’automobiles - Imposition d’une taxe d’accise sur les
véhicules énergivores
March 2007
Notice to all Licensed Manufacturers and Wholesalers, and Importers of
Automobiles
IMPOSITION OF EXCISE TAX ON FUEL-INEFFICIENT VEHICLES
On Monday, March 19, 2007, the Minister of Finance, the Honourable Jim Flaherty, tabled a Notice of
Ways and Means Motion to amend the Excise Tax Act Relating to Excise Taxes. The Motion includes
changes to the non-GST/HST portions of the Excise Tax Act (the Act). Under the proposed changes,
section 6 of Schedule I to the Act will be amended to impose a new excise tax on certain fuel-inefficient
vehicles. This replaces the existing heavy vehicle weight tax, which no longer applies after
March 19, 2007.
The fuel-inefficient vehicle tax will apply to automobiles (including station wagons, vans, and sports
utility vehicles) designed primarily for use as passenger vehicles, but not including pickup trucks,
ambulances, and hearses, in accordance with the vehicle’s fuel-efficiency rating. Passenger vans capable
of transporting more than eight individuals are excluded from this tax.
Calculation and rates of tax
The excise tax on fuel-inefficient vehicles is calculated on the basis of the weighted average fuel
consumption rating as determined in accordance with information published by Natural Resources
Canada. For purposes of this tax, the weighted average fuel consumption rating is calculated by
combining 55% of the city fuel consumption rating with 45% of the highway fuel consumption rating.
Automobiles that have a weighted average fuel consumption rating of 13 or more litres per 100 kilometres
will be subject to the excise tax at the following rates:
• at least 13 but less than 14 litres per 100 kilometres, $1,000;
• at least 14 but les