EDN70 Budget 2021 – Changes to Excise Duty Rates on Tobacco Products
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EDN70 Budget 2021 – Changes to Excise Duty Rates on Tobacco Products
April 2021
In this publication, all legislative references to the “Act” are to the Excise Act, 2001. The information included in this publication is for reference purposes only and does not replace the Act or its regulations. Should there be any discrepancy between this information and that contained in the Act, the legislative provisions apply.
If the information in this publication does not completely address your particular situation, you may wish to refer to the Act or relevant regulation, or contact any Canada Revenue Agency (CRA) regional excise office for additional information. These offices are listed at Contact Information – Excise Duties, Excise Taxes, Fuel Charge and Air Travellers Security Charge.
On April 19, 2021, the Minister of Finance tabled Budget 2021 and an accompanying Notice of Ways and Means Motion proposing amendments to the Excise Act, 2001. Consequently, the rates of excise duty on tobacco products are increasing effective April 20, 2021. The rates increase does not apply to the excise duty on raw leaf tobacco and to the special duty on stamped tobacco products manufactured in Canada and exported.
The new rates of excise duty on tobacco products are outlined below. The rates that were in effect prior to April 20, 2021 are also provided.
| Product | Effective April 20, 2021 | April 1, 2021 to April 19, 2021 |
|---|---|---|
| Cigarettes | $0.72725 per 5 cigarettes or fraction of 5 cigarettes contained in any package | $0.62725 per 5 cigarettes or fraction of 5 cigarettes contained in any package |
| Tobacco sticks | $0.14545 per stick | $0.12545 per stick |
| Manufactured tobacco other than cigarettes and tobacco sticks | $9.09062 per 50 grams or fraction of 50 grams contained in any package | $7.84062 per 50 grams or fraction of 50 grams contained in any package |
| Cigars | $31.65673 per 1,000 cigars | $27.30379 per 1,000 cigars |
| Rate | Period |
|---|---|
|
The greater of
|
Effective April 20, 2021 |
|
The greater of
|
April 1, 2021 to April 19, 2021 |
| Product | Effective April 20, 2021 | April 1, 2021 to April 19, 2021 |
|---|---|---|
| Cigarettes | $0.14545 per cigarette | $0.12545 per cigarette |
| Tobacco sticks | $0.14545 per stick | $0.12545 per stick |
| Manufactured tobacco other than cigarettes and tobacco sticks | $9.09062 per 50 grams or fraction of 50 grams contained in any package | $7.84062 per 50 grams or fraction of 50 grams contained in any package |
| Product | Effective April 20, 2021 | April 1, 2021 to April 19, 2021 |
|---|---|---|
| Cigarettes | $0.14545 per cigarette | $0.12545 per cigarette |
| Tobacco sticks | $0.14545 per stick | $0.12545 per stick |
| Manufactured tobacco other than cigarettes and tobacco sticks | $9.09062 per 50 grams or fraction of 50 grams contained in any package | $7.84062 per 50 grams or fraction of 50 grams contained in any package |
| Product | Effective April 20, 2021 | April 1, 2021 to April 19, 2021 |
|---|---|---|
| Cigarettes | $0.14545 per cigarette | $0.12545 per cigarette |
| Tobacco sticks | $0.14545 per stick | $0.12545 per stick |
| Tobacco products other than cigarettes and tobacco sticks | $181.81240 per kilogram | $156.81240 per kilogram |
For a listing of current and historical excise duty rates, go to Excise Duty Rates.
What happens next?
Effective April 20, 2021, the CRA will collect the increased duty, paid on a voluntary basis, until such time as the amendments become law (that is, until they receive Royal Assent). Importers and licensees that do not pay the duty in accordance with the new rates as of the date cited above will be required to pay interest on unpaid amounts once Royal Assent is received.
Annual adjustments
The excise duty rates on tobacco products will continue to be adjusted annually. The rates will be indexed to the Consumer Price Index on April 1 of each year. The CRA will publish the adjusted rates each year, well in advance of April 1.
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 request a ruling or interpretation related to excise duties, go to Contact Information – Excise Duties, Excise Taxes, Fuel Charge and Air Travellers Security Charge.
- Date modified:
- 2021-04-19