1. The purpose of this Customs Notice is to advise the public that the Ontario Ministry of Finance has requested that the Canada Border Services Agency (CBSA) expand its provincial agreement to incorporate the collection of tobacco tax on casual importations within the postal stream for Ontario. This agreement is similar to agreements that are currently in place between the CBSA and other provinces, such as British Columbia and Alberta.
2. Effective November 17, 2020, the Customs Declaration System (CDS) will be modified and the Postal Import Control System (PICS) application will be upgraded to accommodate this agreement.
3. Residents of provinces with an agreement to collect the PST or tobacco tax are only subject to the tax when they import taxable non-commercial goods into their province of residence.
Ontario Tobacco tax rates:
4. As of March 29, 2018, the current tax rates are:
- 18.475¢ per cigarette
- 18.475¢ per gram or part gram of tobacco product other than cigarettes and cigars and
- 56.6 per cent of the taxable price of a cigar
5. Tobacco tax on a pack of 20 cigarettes equals $3.70, on a pack of 25 cigarettes equals $4.62 and on a carton of 200 cigarettes equals $36.95.
6. Tobacco products sold in Ontario are also subject to federal excise duty and Harmonized Sales Tax (HST).
CSCB subscribers looking for more information should consult Memorandum D5-1-1 International Mail Processing and Memorandum D2-3-6, Non-Commercial Provincial Tax Collection Programs.
This 13 November 2020 notice is from the CBSA website.