Abstract
This is an independent cost estimate of a budgetary measure contained in the federal government’s Budget 2021. A list of the PBO’s cost estimates of components of the Budget can be viewed on this page.
Increasing the tobacco excise duty rate by $4 per carton of 200 cigarettes, along with corresponding increases to the excise duty rates for other tobacco products outlined in the table below:
|
Products |
Excise Duty Rates |
|
|
Before Budget Day |
After Budget Day |
|
|
Cigarettes (per carton of 200) |
$25.09 |
$29.09 |
|
Tobacco Sticks (per stick) |
$0.12545 |
$0.14545 |
|
Manufactured Tobacco (per 50 grams or fraction thereof) |
$7.84062 |
$9.09062 |
|
Cigars |
$27.30379 per 1,000 cigars plus the greater of $0.09814 per cigar and 88 per cent of the sale price or duty-paid value |
$31.65673 per 1,000 cigars plus the greater of $0.11379 per cigar and 88 per cent of the sale price or duty-paid value |
Inventories of cigarettes held by certain manufacturers, importers, wholesalers, and retailers at the beginning of the day after Budget Day are subject to an inventory tax of $0.02 per cigarette, subject to certain exemptions.
