EDN101 Adjusted rates of excise duty on tobacco products effective April 1, 2025
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EDN101 Adjusted rates of excise duty on tobacco products effective April 1, 2025
Excise Duty Notice
February 2025
This notice provides information about the adjusted rates of excise duty that will become payable on tobacco products on or after April 1, 2025.
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.
Table of Contents
- General information
- Excise duty on stamped tobacco products (except raw leaf tobacco)
- Additional duty on cigars
- Special duty on unstamped imported manufactured tobacco delivered to a duty free shop
- Special duty on traveller's tobacco
- Special duty on unstamped tobacco products manufactured in Canada and exported
General information
Under the Excise Act, 2001, the rates of excise duty on tobacco products are adjusted annually every 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, which remains unchanged at $1.572 per kilogram, or to the rates of special duty on stamped tobacco products.
The adjusted rates of excise duty that will become payable on tobacco products on or after April 1, 2025, 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, 2025 |
|---|---|
| Cigarettes | $0.95391 per 5 cigarettes or fraction of 5 cigarettes contained in any package |
| Tobacco sticks | $0.19078 per tobacco stick |
| Manufactured tobacco other than cigarettes and tobacco sticks | $11.92379 per 50 grams or fraction of 50 grams contained in a package |
| Cigars | $41.52285 per 1,000 cigars |
Additional duty on cigars
The rate of additional duty on cigars was determined in accordance with Schedule 2 to the Act.
Effective April 1, 2025, the rate of additional duty per cigar is the greater of:
- $0.14925
- 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, 2025 |
|---|---|
| Cigarettes | $0.19078 per cigarette |
| Tobacco sticks | $0.19078 per tobacco stick |
| Manufactured tobacco other than cigarettes and tobacco sticks | $11.92379 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, 2025 |
|---|---|
| Cigarettes | $0.19078 per cigarette |
| Tobacco sticks | $0.19078 per tobacco stick |
| Manufactured tobacco other than cigarettes and tobacco sticks | $11.92379 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 were determined in accordance with section 3 of Schedule 3 to the Act.
| Product | Rate effective April 1, 2025 |
|---|---|
| Cigarettes | $0.19078 per cigarette |
| Tobacco sticks | $0.19078 per tobacco stick |
| Tobacco products other than cigarettes and tobacco sticks | $238.47580 per kilogram |
For a listing of current and historical rates of excise duty on tobacco products, go to Excise duty rates.
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.
Page details
- Date modified:
- 2025-02-12