Fact Sheet

Bill C-259 – An Act to amend the Excise Tax Act

On November 25, 2005, the Senate passed Bill C-259*, an Act to amend the Excise Tax Act (elimination of the excise tax on jewellery). On the same day, Bill C-259 received Royal Assent.

Bill C-259 amended the wording of Section 5 to Schedule I of the Excise Tax Act, and had the following immediate impacts on the administration of the excise tax:

• The excise tax on all watches has been eliminated as of November 25, 2005.
• The excise tax on clocks adapted for household or personal use, except those specially designed for the use of the blind, will be increased to 10% of the amount by which the sale price or duty-paid value exceeds fifty dollars, as of November 25, 2005. The tax on clocks will be eliminated in 2009.

Under the existing legislation*, all articles made of semi-precious stones, jewellery, precious and semi-precious stones, and goldsmiths’ and silversmiths’ products remain subject to excise tax at the rate of 8%, and are subject to the rate reduction schedules currently in place. Also, as outlined in existing legislation, the excise tax on clocks, articles made of semi-precious stones, jewellery, precious and semi-precious stones, and goldsmiths’ and silversmiths’ products will be eliminated on March 1, 2009.

* For the complete and exact wording of Bill C-259, please visit the following website: http://www.parl.gc.ca/LEGISINFO/index.asp?Lang=E&Chamber=N&
StartList=A&EndList=Z&Session=13&Type=0&Scope=I&query=4306&List=toc-1

The current relevant provisions of the Excise Tax Act can be viewed by visiting the Site for Bill C-43, which amended the Excise Tax Act in June of this year:

http://www.parl.gc.ca/LEGISINFO/index.asp?Lang=E&Chamber=N&
StartList=A&EndList=Z&Session=13&Type=0&Scope=I&query=4397&List=toc-1

Who to Call:

For further information regarding amendments to the Excise Tax Act as noted above, please use the following toll free numbers: ENGLISH 1-866-330-3304 FRENCH 1-800-877-9277.