This guide provides a summary of the rules under the Excise Act, 2001 related to excise duties on cigars. It does not replace the law itself. For more detailed information, you should refer to the Act and its regulations or contact your local CRA regional excise office. Contact information can be found under Contact Information – Excise and Specialty Tax Directorate.

Excise Duty Rates for Cigars

Every year, on April 1, excise duty rates for tobacco products, including cigars, are adjusted based on inflation (Consumer Price Index) as required by the Excise Act, 2001. Here are the updated rates starting April 1, 2024:

Basic Excise Duty on Cigars

The standard excise duty on cigars will be:

• $36.07829 per 1,000 cigars

This rate applies to all cigars sold in Canada.

Additional Duty on Cigars

There is also an additional duty on cigars, which is whichever of the following is higher:

• $0.12968 per cigar, or
• 88% of:
  • The selling price for cigars made in Canada, or
  • The duty-paid value for imported cigars.

This means the duty could be higher if the cigar is more expensive or imported.

These duties ensure fair taxation of both Canadian and imported cigars.

For more specific information or if you have questions about cigar excise duties, please refer to the Excise Act, 2001 or contact your CRA regional excise office.