Our website uses  cookies for statistical purposes.

  • Unit 1, 300 Supertest Road, Toronto, ON M3J 2M2
  • clients(at)canadacompanyformation.com
  • +1-(905) 505-4775
Our Articles

Selling Tobacco in Canada

Selling Tobacco in Canada

The tobacco industry is one of the most profitable economic sectors in the global economy. Developed countries like Canada are among the best markets for selling tobacco and tobacco products, which is why the authorities have created an extensive legal framework which regulates this market.

Foreign investors who want to open tobacco shops or other types of ventures for selling tobacco and associated products must respect the national laws and international conventions related to this industry. Below, our company formation agents in Canada explain the laws related to selling tobacco in this country.

The Tobacco Law in Canada

The Tobacco Act is the most important law Canadian companies selling cigarettes and other products must respect. The law incorporates several provisions related to the obligations of those selling, but also of those buying tobacco. Among these are:

  • the Tobacco Access Rules;
  • the Tobacco Products Information Rules;
  • the Tobacco Reporting Rules;
  • the Product Labeling Rules;
  • the Promotion of Tobacco Products Regulations;
  • the Stamping and Marking of Tobacco Products Rules.

Another important law related to the sale of tobacco in Canada is the Non-smokers’ Health Law. Canada is a member of the World Health Organization’s Convention on Tobacco Control since 2005.

Our Canadian company formation consultants can help investors who want to open tobacco shops.

Rules for tobacco shops in Canada

All Canadian companies selling tobacco products are required to comply with several requirements, among which:

  • requesting a proof of age to minors trying to buy tobacco;
  • display signs related to the prohibition of selling tobacco to minors.

Those who want to set up tobacco shops in Canada must also know that advertising the products they sell is prohibited in certain areas.
With respect to tobacco manufacturers, these must mark cigarette packages with:

  • the emissions of the products they sell;
  • health warnings.

Also, the manufacturing of tobacco products must be made in accordance with the conformity standards imposed by international organizations.

For full information on the tobacco sale regulations, please contact our representatives in Canada. We can also assist those interested in starting a company in Canada.

Investors who want to start a business in Canada that deals with the sale of tobacco must make sure that they respect the applicable legislation in the field, which has many restrictions for the purpose of limiting the access to this product.

Given the nature of tobacco products, which are known to have negative effects on the human health, the Canadian state charges many taxes.

For example, in the province of Ontario, the tax charged for a pack of cigarettes – the standard pack of 20 cigarettes, the Ontario authorities charge a tax of $3.70.

In Canada one can also find cigarettes packages which have 25 units, and the tax for this is of $4.62. Our accountants in Canada can offer more information on the taxes applied to tobacco and other tobacco products.

You must know that the taxes charged to tobacco products are imposed to all categories of businesses without any exemptions.

Thus, if you will arrive here through the Owner Operator program in Canada and your business sells tobacco and tobacco products, you will be required to pay the same taxes imposed to local businessmen. Our consultants can offer more information on this program.

We invite you to contact us if you want to learn about other programs for foreign investors or for foreign workers who want to relocate here.

For instance, one can arrive here under the Intra Company Transfer in Canada, if a person works in a foreign company that has set up operations in Canada as well, and if other basic conditions are satisfied by the applicant.