Why Are Cigarettes So Expensive in Canada?

Before, people used to consume tobacco products differently. Some would use these products for medicinal purposes, while others take advantage of tobacco as a part of religious ceremonies or rituals.

As more countries discovered the soothing and relaxing effects of tobacco plants, they started harvesting them and packaged them into what we already know today as cigarettes. Cigarettes used to be made by poor people back then, gathering cigar stubs and rolling leftover tobacco in paper. As these newfound tobacco products became more popular among the masses, tobacco companies started to pick them up, setting their prices to be affordable for everyone. In the modern day, people can easily learn more about cigarettes through various resources such as books, documentaries, and online articles like the ones on our website. Despite the widespread knowledge about the harmful effects of smoking, cigarettes continue to be a popular consumer product. However, with increased awareness about the health risks associated with smoking, many people are choosing to quit or avoid cigarettes altogether. If you want to learn more about cigarettes, there are numerous resources available to help you understand their history, production, and impact on health.

Today, however, cigarettes have become expensive in Canada. The same thing is happening across the globe. How did this happen? What are the triggers that make cigarettes expensive today? NativeSmokes4Less is here to provide you with answers regarding the current pricing of cigarettes.

High Price to Reduce Consumption

To better understand why cigarette prices can get so high, you should know the smoking data here in Canada first.

Based on the Canadian Tobacco and Nicotine Survey (CTNS), the current smoking prevalence among Canadians aged 15 years and older in 2022 was 10.9% or 3.5 million. During the same year, those who smoke daily have then reached 8.2% or 2.6 million, while individuals who smoke occasionally have reached 2.7% or 871,000. 

Other data you should know about cigarette smoking, particularly among youth (15-19 years of age), young adults (20-24 years of age), and adults (25+), are as follows:

Youth Cigarette Smoking (15-19 years):

• Current smoking: 4.2% (89,000) unchanged from 2021.
• Daily smoking: 1.0% (22,000)
• Occasional smoking: 3.2% (67,000)

Young Adult Cigarette Smoking (20-24 years):

• Current smoking: 7.7% (185,000) decreased from 2021.
• Men: 9.6% (121,000)
• Women: 5.6% (64,000)
• Daily smoking: 2.6% (62,000)
• Men: 3.5% (44,000)
• Women: 1.5% (18,000)
• Occasional smoking: 5.1% (123,000)

Adult Cigarette Smoking (25+ years):

• Current smoking: 11.7% (3.2 million) unchanged from 2021.
• Men: 13.8% (1.9 million)
• Women: 9.8% (1.4 million)
• Daily smoking: 9.3% (2.6 million)
• Men: 10.3% (1.4 million)
• Women: 8.3% (1.2 million)
• Occasional smoking: 2.5% (681,000)

All these figures only confirm that cigarette smoking is still highly sought by many individuals in Canada. Despite the health risks associated with tobacco smoke, many individuals still seek cigarettes as a way to relax their minds and senses, help them socialize with others, and many more.

Regardless of their reasons, it’s important to note that cigarettes can truly lead to health risks not only to the smokers themselves but also to others around them. Even non-smokers can be affected by the chemicals released by the cigarette smoke.

Hence, to reduce the number of smokers in Canada and the number of people getting affected by secondhand smoke, the government has implemented price increases for cigarettes. 

One way they increase the prices of cigarettes is to impose tobacco taxes.

Under the Excise Act of 2001, tobacco products’ excise duty rates are subject to annual adjustments (every April 1st) in response to changes in the Consumer Price Index. Now, this adjustment doesn’t apply to the excise duty rate on raw leaf tobacco or to the special duty rates on stamped tobacco products. 

This year, the adjusted rate of excise duty on cigarettes has been set at $0.82883 per 5 cigarettes or a fraction of 5 cigarettes contained in any package. The excise duty rates of cigars, tobacco sticks, and other manufactured tobacco products have also been adjusted accordingly.

Despite the low excise duty rates, they can add up to the overall amount of cigarettes in the market. The taxes imposed on these tobacco products, which can add to the overall cigarette cost, are intended to reduce tobacco consumption among smokers. They can then help the federal government fund public health campaigns and initiatives.

Aside from the federal government, provinces can likewise impose taxes on cigarette products. Alberta, for instance, has increased the province’s tobacco tax by 2.5 cents per cigarette, which raises the tax of a cigarette carton to $60 excluding its retail price. They are also planning to raise the tax on smokeless tobacco as well as collect taxes on vaping products by January 1, 2025.

Once implemented, the average price of a pack of cigarettes in Alberta will become $15.68.

Many more provinces in Canada have followed suit or are implementing tax raises on cigarette products, making sure that they adhere to the call of the federal government to continuously encourage smokers to reduce the consumption of cigarettes until they completely quit smoking.

A senior policy analyst with the Canadian Cancer Society, Rob Cunningham, even expressed a glimmer of hope that the rise in cigarette prices due to tax increases could be beneficial for public health. He said that this could discourage young people and youth from purchasing and using cigarettes.

The Price of Cigarettes Continues to Increase

While the government in Canada is keen on increasing the taxes on tobacco products like cigarettes as a way to earn revenue and, at the same time, reduce the number of people depending on them, the tobacco industry actually imposes price increases on cigarette products on their own.

You see, the prices of cigarettes may slowly increase due to tax hikes. However, it’s actually the tobacco companies and cigarette brands that cause these products to become more expensive.

Based on the findings of Physicians for a Smoke-Free Canada, the price of a cigarette carton has increased by approximately $7 during the study period. In contrast, the federal tobacco taxes for the same product have only risen by 53 cents.

Due to the nature of price increases of cigarette products, it’s safe to assume that governments get less than those obtained by cigarette brands. But, cigarette taxes should not still be underestimated as they are seen to be effective in gradually decreasing the number of smokers in Canada.

According to a report by Health Canada, the smoking levels in Canada may go down significantly by 2036 once the tobacco taxes increase by up to 80% of the overall price of cigarettes. The final price of cigarettes, after all, is a combination of the brand’s wholesale price, any retail markup, and taxes.

Remember, the final price of cigarettes is a combination of the brand’s wholesale price, any retail markup, and taxes. So, if tobacco taxes were to increase by up to 80% of the overall price of cigarettes, the smoking levels in Canada may significantly decrease by 2036. This figure is a predicted outcome by a Health Canada report.

Who Benefits From Increasing Prices?

With many health data regarding the effects of cigarette smoke on one’s body as well as the continuous increase of cigarette prices, the smoking rates in Canada have been declining gradually. 

The smoking rates in Canada are declining gradually due to a couple of reasons.

First, smokers are now turning to alternative products like e-cigarettes and smokeless nicotine products as a way to consume nicotine. This stems from the fact that tobacco smoke has been proven to be dangerous to their health, especially if they light up cigarettes regularly.

Additionally, cigarettes are becoming more and more expensive. Unlike new products in the market like vaping devices, a pack of cigarettes has become more expensive than buying a new e-cigarette. When you use a vaping device, you don’t have to spend anything from the moment you buy it until it runs out of juice. As for cigarettes, you have to constantly buy a pack or carton just to meet your nicotine needs.

Of course, the pricing of cigarettes may then vary based on your location. Some Canadian provinces tend to impose higher taxes on these tobacco products, while others don’t. Nevertheless, the price differences would push some cigarette smokers to buy their supply of smokes from other places. They may also opt for online purchases instead to save some money.

Now, with the price increases in cigarettes, you may be wondering who really benefits from it. 

Price increases in cigarettes, especially through taxes and excise duty rates, can highly benefit the government since they can help fund campaigns and initiatives against the use of tobacco products. They can then fund healthcare projects, smoking cessation and prevention programs, and other similar efforts that will help smokers from all walks of life to reduce and stop their dependence on cigarettes.

Aside from federal and provincial governments, price increases in cigarettes can benefit smokers, especially those who may eventually be forced to give up smoking as their daily habit.

Many studies have already pointed out the health risks associated with smoking cigarettes. Some illnesses related to smoking cigarettes due to the chemicals they produce include:

• Cancer
• Heart disease, stroke, and blood circulation problems
• Breathing problems and chronic respiratory conditions
• Diabetes
• Dental problems
• Infections
• Heating and vision loss
• Fertility problems

Without quitting smoking as soon as possible, smokers will only risk developing these diseases until their overall health deteriorates. As soon as the cigarette pricing increases, smokers don’t have a choice but to either reduce the number of cigarettes they smoke in a day or completely stop smoking these tobacco products. They may have an additional option to allocate more money to cigarettes, but only those who have extra income are capable of doing it.

How about tobacco companies? Do they also benefit from increasing the prices of cigarettes?

It depends, but most of the time, tobacco companies are typically forced to increase the prices of their offerings so they can adhere to the regulations and standards set by the governments in Canada. 

Regulations that cover cigarettes change from time to time. If governments started to impose stringent regulations on tobacco advertising, especially with its health effects, then cigarette brands should follow them accordingly.

Repackaging cigarettes, for instance, requires additional costs to add the necessary warning labels before they are allowed to be sold again on shelves. Pulling out items from the public likewise becomes an unnecessary spending and revenue loss for tobacco companies. 

So, even if they hike the prices of cigarettes, tobacco companies are only covering the huge loss they may have incurred just to follow the regulations of the government.

Most Expensive Cigarettes in Canada  

The price of cigarettes in Canada is determined primarily by tax rates.

You see, the prices of cigarettes here in Canada may vary depending on the province where they will be sold. While the federal taxes remain the same throughout the range of cigarettes being sold in the country, provincial taxes provide otherwise. 

Some provinces may impose higher taxes on cigarettes. Others, alternatively, could be more lenient and only add a slight amount of tax to these tobacco products. There are even provinces that take a couple of years before they add taxes on cigarette products.

But regardless of the taxes imposed by provinces and the federal government itself, there are cigarettes that are priced significantly higher than others due to brand reputation. Cigarette brands that have been around for a very long time often have the right to impose price hikes on their items, especially if they see the need to do it.

Most of the time, premium cigarette brands are known for using high-quality tobacco, unique blends of ingredients, state-of-the-art manufacturing facilities and processes, and sophisticated packaging. 

Now, some of the most expensive cigarettes in Canada are as follows:

• Belmont: One of the most recognized cigarette brands in Canada is Belmont. It’s known for offering cigarettes with a smooth draw. The premium variants of this brand cost more than other cigarettes available in the market today.
• Export A Platinum: A Canadian favourite, the Export A Platinum line is known to be among the costlier cigarette options in the country due to its quality and refinement.
• Benson & Hedges: Another great brand of cigarettes you can find here in Canada is Benson & Hedges. It offers a premium choice that is highly recognized for its smooth draw. The long-standing reputation of this brand makes it a great option for many smokers in Canada.
• Davidoff: Davidoff is a cigarette brand that is synonymous with elegance. The cigarettes from this brand are made from high-quality tobacco, which allows for a refined smoking experience.
• Dunhill: Dunhill is a luxury cigarette brand that is famous for its premium tobacco blends. Using these fine ingredients allows the cigarettes to provide a smooth taste. They are then packed in sophisticated packaging so you can recognize them right away.

Other brands you can find here in Canada include du Maurier, Macdonald, Craven ‘A’, Pall Mall, Peter Jackson, and Vogue. The prices of these cigarettes may vary between $15 to $20 per pack, which could vary due to differing tax rates and local regulations.

Native Cigarettes: The Cheapest Option

When buying cigarettes, you might have encountered the option to pick native cigarettes. 

Native cigarettes in Canada are tobacco products that have been manufactured and sold by Indigenous communities, often on Indian reserves. Since these products come from companies on reserve lands, their production and sale are highly tied to treaty rights and self-governance. 

For these reasons, you can expect native cigarettes to be cheaper than the mainstream products being sold by stores as they don’t need to fully adhere to federal and provincial tobacco regulations. But by the time you sell or transport them off reserves, you should pay the required taxes first. Failure to do so will deem the cigarettes to be illegal, classifying them as contraband. 

So, what’s the reason native cigarettes exist?

These cigarettes exist to make sure Indigenous communities in Canada have a way to raise revenues. Since these products are still one of the most sought commodities in the country, allowing native cigarettes to be purchased by adult smokers helps with their economic development. 

Buying native cigarettes, on the other hand, grants consumers more savings since they aren’t totally affected by federal or provincial taxes, especially when purchased on reserves. They also have great quality as they are produced out of high-quality tobacco ingredients. Buying cigarettes from Indian reservations in Canada is a common practice for smokers seeking affordable options, as these cigarettes are often exempt from certain taxes, making them significantly cheaper than those sold in regular retail outlets. However, it’s important to be aware of legal guidelines and restrictions regarding such purchases.

There are a number of native cigarettes you can buy today. Some of them are as follows:

• Canadian Cigarettes: Canadian Cigarettes are a popular choice among smokers due to their smooth taste and quality tobacco blend. 
• disCOUNT: disCOUNT is a cost-effective brand of cigarettes that has a wide reach in Canada.
• Nexxus: Nexxus offer cigarettes made from premium tobacco blends. It is currently available in a wide range of flavours that cater to different types of cigarette smokers.
• DKs: DKs is a well-known cigarette brand here in Canada. Its cigarettes are known for having a rich, robust tobacco taste as they are produced from high-quality tobacco leaves.
• Playfare’s: Playfare’s is a brand of cigarettes known for its responsible and sustainable practices. The brand maximizes eco-friendly farming and packaging processes.
• Prime Time: Prime Time offers a variety of affordable, flavoured cigarettes that provide a delectable smoking experience.
• BB: BB Cigarettes offers premium quality cigarettes to a diverse range of smokers. Their cigarettes produce top-notch smoke, ensuring an enjoyable smoking experience for their customers.

These native cigarette brands are all available at NativeSmokes4Less, your trusted online retailer of cigarettes here in Canada. We can ship your order wherever you are in Canada. Enjoy great discounts now when you purchase our offerings today.

Frequently Asked Questions

Why are cigarettes more expensive in Canada?

Cigarettes are more expensive in Canada due to the additional taxes imposed on them by the government. These taxes are intended to discourage smoking and fund healthcare programs and campaigns. Additionally, the higher cost of cigarettes in Canada is a result of manufacturers passing on the expenses incurred for packaging, marketing, and production to consumers.

Which country is the most expensive for cigarettes?

Australia is the most expensive country for cigarettes. A pack of cigarettes in Australia may cost you around CAD 35 (AUD 40), which is far from the average price of CAD 15 to 20 here in Canada. 

Are cigarettes cheaper in the US or Canada?

Cigarettes are cheaper in the United States compared to Canada because of lower taxes. Aside from high taxes, cigarette brands in Canada are compelled to raise the prices of their products to maintain profitability while complying with the stringent regulations imposed by the Canadian government.

Summary

Cigarette prices tend to be high in Canada compared to other countries in the world due to the high taxes imposed by the federal and provincial governments. When the taxes add up, consumers can expect the prices of their beloved smokes to increase gradually. This may then push some of them to decrease their overall consumption of cigarettes until they no longer want to smoke any more. 

When this happens, the government may have become successful in their objective of imposing taxes on these products, which is to reduce the consumption of cigarettes in Canada. It can, after all, not only save smokers from the dangers of tobacco smoke but also keep non-smokers free from the health risks associated with secondhand smoke as well.

Now you know why cigarettes are expensive in Canada, you may want to learn how these tobacco products exist in the first place. Know the brief history of cigarettes today!