Budget 2024 – Changes to Excise Duty Rates on Tobacco Products

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Budget 2024 – Changes to Excise Duty Rates on Tobacco Products

From: Canada Revenue Agency

Excise Duty Notice EDN93

April 2024

This notice provides information about a Budget 2024 announcement to increase the rates of excise duty on tobacco products.

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.

Any commentary in this publication should not be taken as a statement by the CRA that the proposed amendments will be enacted in their current form.

General

On April 16, 2024, the Deputy Prime Minister and Minister of Finance tabled Budget 2024 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 17, 2024. The rate 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 17, 2024, are also provided.

Rates of excise duty on stamped tobacco products (except raw leaf tobacco)
Product Rate effective April 17, 2024 Rate effective April 1, 2024 to April 16, 2024
Cigarettes $0.92883 per 5 cigarettes or fraction of 5 cigarettes contained in any package $0.82883 per 5 cigarettes or fraction of 5 cigarettes contained in any package
Tobacco sticks $0.18576 per stick $0.16576 per stick
Manufactured tobacco other than cigarettes and tobacco sticks $11.61031 per 50 grams or fraction of 50 grams contained in any package $10.36032 per 50 grams or fraction of 50 grams contained in any package
Cigars $40.43121 per 1,000 cigars $36.07829 per 1,000 cigars
Rates of additional duty on cigars
Rate per cigar Period

The greater of:

  • $0.14533
  • 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

Effective April 17, 2024

The greater of:

  • $0.12968
  • 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

April 1, 2024 to April 16, 2024
Rates of special duty on unstamped imported manufactured tobacco delivered to a duty free shop
Product Rate effective April 17, 2024 Rate effective April 1, 2024 to April 16, 2024

Cigarettes

 $0.18577 per cigarette

$0.16577 per cigarette

Tobacco sticks

 $0.18576 per stick

$0.16576 per stick
Manufactured tobacco other than cigarettes and tobacco sticks $11.61031 per 50 grams or fraction of 50 grams contained in any package $10.36032 per 50 grams or fraction of 50 grams contained in any package
Rates of special duty on traveller’s tobacco
Product Rate effective April 17, 2024 Rate effective April 1, 2024 to April 16, 2024

Cigarettes

 $0.18577 per cigarette

$0.16577 per cigarette

Tobacco sticks

 $0.18576 per stick

$0.16576 per stick
Manufactured tobacco other than cigarettes and tobacco sticks $11.61031 per 50 grams or fraction of 50 grams contained in any package $10.36032 per 50 grams or fraction of 50 grams contained in any package
Rates of special duty on unstamped tobacco products
Product Rate effective April 17, 2024 Rate effective April 1, 2024 to April 16, 2024

Cigarettes

 $0.18577 per cigarette

$0.16577 per cigarette

Tobacco sticks

 $0.18576 per stick

$0.16576 per stick
Tobacco products other than cigarettes and tobacco sticks $232.20620 per kilogram $207.20640 per kilogram

What happens next

Effective April 17, 2024, 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 excise duties, go to Excise duties technical information.

For information on how to make a general or technical enquiry on excise duties, go to Contact Information – Excise and Specialty Tax Directorate.

For information on how to request a ruling or interpretation related to excise duties, go to Requesting an Excise and Specialty Tax Ruling or Interpretation.


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Date modified:
2024-04-16