Cigars
Detailed information regarding cigars may be obtained by downloading the following Ontario Tax Bulletins:
- What does "taxable price" of a cigar mean?
- What is the rate of tax on cigars?
- Do I need a licence to import and/or wholesale cigars?
What does "taxable price" of a cigar mean?
- 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% - 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.
For further information, please refer to Ontario Tax Bulletin TT 1-2001, Schedule A (pg.4)
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.
