Printable Version Excise Tax Changes

On Nov. 25, 2005, Section 5 of Schedule I of the Excise Tax Act was amended to eliminate the excise tax on watches effective immediately.

The other immediate effect of the amendment involves a tax increase on most clocks. With the exception of clocks specially designed for the blind, clocks designed for household or personal use will receive an excise tax of ten percent on the amount by which the duty-paid value or sale price exceeds $50.00.

The Excise Tax Act retains an excise tax of eight percent on jewelry, precious and semi-precious stones, all articles made of precious and semi-precious stones, and goldsmiths’ and silversmiths’ products. These items are subject to current rate reduction schedules.

On March 1, 2009, the excise tax on clocks, jewelry, precious and semi-precious stones, all articles made of precious and semi-precious stones, and goldsmiths’ and silversmiths’ products will be eliminated.

For more information, visit the CBSA Web site.