Tobacco Tax

Frequently Asked Questions About Cigars


What does "taxable price" of a cigar mean?

  1. taxable price = the price for which the cigar was purchased by its retail dealer + a prescribed percentage of that amount*, or
    * taxable price of cigar defines as wholesale price to retailer × 22%
  2. taxable price = the price paid for the cigar by the consumer where a consumer purchases the cigar directly from the manufacturer or importer of the cigar.

What is the rate of tax on cigars?

Effective June 18, 2002, the cigar tax rate is 56.6%. This rate is applied to the taxable price of a cigar.

Do I need a licence to import and/or wholesale cigars?

The Tobacco Tax Act requires that all businesses who plan to import and/or wholesale cigars in Ontario must apply to be designated as a Cigar Tax Collector.

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