Canadian Tobacco Excise Duty Increase Goes Into Effect Today

The federal excise duty on tobacco products sold in Canada is going up today, a move that will raise the tax rate by approximately 24%.

For cigars, that means an increase from $18.50 to $22.89 per 1,000 cigars, though the increase doesn’t appear to apply at duty-free shops. The increase applies to all tobacco products sold in the country, with the tax on cigarettes and tobacco sticks going from $17.00 to $21.03 per 200 cigarettes, and chewing tobacco and fine cut tobacco for roll-your-own cigarettes going from $21.25 to $26.29 per 200 grams.

The Toronto Sun reports that the government says the increase adjusts for inflation back to 2002, which is the last time the duty was increased. The move is projected to bring in $96 million in 2014, and then $600 million annually going forward.

The excise duty rate is now indexed to the Consumer Price Index and will be adjusted automatically every five years.

The report also makes note that the Canadian government will be spending $91.7 million over the next five years to purchase and install surveillance equipment at smoke-smuggling hot spots along the border.

Patrick Lagreid

I strive to capture the essence of a cigar and the people behind them in my work – every cigar you light up is the culmination of the work of countless people and often represents generations of struggle and stories. For me, it’s about so much more than the cigar – it’s about the story behind it, the experience of enjoying the work of artisans and the way that a good cigar can bring people together. In addition to my work with halfwheel, I’m the public address announcer for the Colorado Rockies and Arizona Diamondbacks during spring training, as well as for the Salt River Rafters of the Arizona Fall League, the WNBA's Phoenix Mercury and previously the Arizona Rattlers of the Indoor Football League. I also work in a number of roles for Major League Baseball, plus I'm a voice over artist. Prior to joining halfwheel, I covered the Phoenix and national cigar scene for Examiner.com, and was an editor for Cigar Snob magazine.