Adjusted Rates of Excise Duty on Tobacco Products Effective April 1, 2023
Excise Duty Notice EDN86
March 2023
This notice provides information about the adjusted rates of excise duty that will become payable on tobacco products on or after April 1, 2023.
Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act, 2001. The information in this publication does not replace the law found in the Act and its regulations.
If this information does not completely address your particular situation, you may refer to the Act or relevant regulation, or contact your CRA regional excise office for additional information. The offices are listed at Contact Information – Excise and Specialty Tax Directorate.
General
The rates of excise duty and special duty on certain tobacco products are adjusted annually on April 1 based on changes to the Consumer Price Index.
This annual adjustment does not apply to the rate of excise duty on raw leaf tobacco or to the rates of special duty on stamped tobacco products manufactured in Canada and exported.
For current and historical rates of excise duty on tobacco products, go to Excise Duty Rates.
A cigarette inventory tax applies to cigarettes held in inventory at 12:01 am on April 1. If you own cigarettes that will be for sale in the ordinary course of your business, you must determine your inventory of cigarettes at the beginning of the day on April 1, 2023, in order to calculate the amount of cigarette inventory tax payable. For more information on the cigarette inventory tax, refer to Excise Duty Notice EDN87, Cigarette Inventory Tax on April 1, 2023.
The adjusted rates of excise duty that will become payable on tobacco products on or after April 1, 2023, are listed below.
Excise duty on stamped tobacco products (except raw leaf tobacco)
The following rates of excise duty were determined in accordance with sections 1 to 4 of Schedule 1 to the Act.
| Product | Rate effective April 1, 2023 |
|---|---|
| Cigarettes | $0.79162 per 5 cigarettes or fraction of 5 cigarettes contained in any package |
| Tobacco sticks | $0.15832 per tobacco stick |
| Manufactured tobacco other than cigarettes and tobacco sticks | $9.89524 per 50 grams or fraction of 50 grams contained in a package |
| Cigars | $34.45873 per 1,000 cigars |
Additional duty on cigars
The rate of additional duty on cigars is determined in accordance with Schedule 2 to the Act.
Effective April 1, 2023, the rate of additional duty per cigar is the greater of:
- $ 0.12386
- the amount that is 88% of:
- the sale price, in the case of cigars manufactured in Canada
- the duty-paid value, in the case of imported cigars
Special duty on unstamped imported manufactured tobacco delivered to a duty free shop
The following rates of special duty were determined in accordance with section 1 of Schedule 3 to the Act.
| Product | Rate effective April 1, 2023 |
|---|---|
| Cigarettes | $0.15832 per cigarette |
| Tobacco sticks | $0.15832 per tobacco stick |
| Manufactured tobacco other than cigarettes and tobacco sticks | $9.89524 per 50 grams or fraction of 50 grams contained in a package |
Special duty on traveller’s tobacco
The following rates of special duty were determined in accordance with section 2 of Schedule 3 to the Act.
| Product | Rate effective April 1, 2023 |
|---|---|
| Cigarettes | $0.15832 per cigarette |
| Tobacco sticks | $0.15832 per tobacco stick |
| Manufactured tobacco other than cigarettes and tobacco sticks | $9.89524 per 50 grams or fraction of 50 grams contained in a package |
Special duty on unstamped tobacco products manufactured in Canada and exported
The following rates of special duty have been determined in accordance with section 3 of Schedule 3 to the Act.
| Product | Rate effective April 1, 2023 |
|---|---|
| Cigarettes | $0.15832 per cigarette |
| Tobacco sticks | $0.15832 per tobacco stick |
| Tobacco products other than cigarettes and tobacco sticks | $197.90480 per kilogram |
Further information
For all technical publications related to the Excise Act, 2001 and its regulations, go to Excise duties technical information under the Excise Act, 2001
To make a general or technical enquiry on excise duties or to request a ruling or interpretation related to excise duties, go to Contact Information – Excise and Specialty Tax Directorate.
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