Tobacco Tax

Frequently Asked Questions About First Nations


As a First Nations individual, am I required to pay tobacco tax on cigarettes and other tobacco products purchased on a reserve?

The Indian Act (Canada) provides that Indians, as defined under the Act, are not subject to taxation in certain cases. To reflect this, Ontario exempts First Nations individuals who hold a Certificate of Indian Status Card from paying tax on allocation cigarettes and other tobacco products purchased on a reserve for their exclusive use.

Allocation cigarettes have a federal, peach-coloured stamp on the package and peach coloured stamps on each end of the carton. Only cigarettes with this mark may be sold tax exempt to First Nations individuals.

For additional information, see Tax Bulletin TT 2-2005 First Nations Cigarette Allocation System.

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