“Taxing tobacco products at a sustainable level is an important element of the government’s health strategy to discourage smoking among Canadians,” the budget says.
The government is also increasing the “duty free” excise tax slapped on all Canadian-made cigarettes, tobacco sticks and manufactured tobacco for sale in domestic and foreign duty free shops, as well as on imports of these products for sale in Canadian duty-free shops.
Currently, a carton of 200 cigarettes receives a $2 excise duty preference compared to a carton in thedomestic market ($15 per carton compared to $17). The budget changes will see the duty free rate for cigarettes increase to $21.03 per carton of 200 cigarettes, in line with the changes for smokes available in the domestic market.