Tobacco cost recovery : Overview
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Who is this for
The content on these pages applies to designated manufacturers.
A designated manufacturer is an entity in Canada that manufactures or imports tobacco products for retail sale in Canada. It does not include an entity that only packages, labels, or distributes those tobacco products.
Foreword and disclaimer
Foreword
The objective of the Tobacco Charges Regulations is to require designated manufacturers, which includes importers, to pay an annual charge to recover the costs of the tobacco-related activities undertaken by the Government of Canada in relation to the carrying out of the purpose of the Tobacco and Vaping Products Act (TVPA).
Disclaimer
These pages should be read in conjunction with the Tobacco Charges Regulations and the relevant sections of the TVPA and, where applicable, its other regulations. In the case of any discrepancies between these pages and the TVPA and its regulations, including the Tobacco Charges Regulations, the TVPA and its regulations shall prevail.
Annual charge
The annual charge is the amount, in Canadian dollars, that a designated manufacturer must pay each fiscal year in order for the Government of Canada to recover the costs of the previous fiscal year’s tobacco-related activities (annual cost base).
The annual charge for each designated manufacturer is proportional to their share of total domestic tobacco product net sales revenue in the previous fiscal year (April 1 to March 31).
Included costs cover tobacco-related activities undertaken by the Government of Canada in relation to the carrying out of the purpose of the TVPA.