WHY ARE NATIVE CIGARETTES IN CANADA CHEAP?

[AJAY KAPOOR]

Canada imposes elevated taxes on cigarettes, which leads to their expensive cost. However, native cigarettes sold by Indigenous-owned businesses cost significantly less than commercial tobacco brands in Canada. Native cigarettes in Canada maintain lower prices than standard tobacco products due to multiple legal and economic elements rooted in historical aspects. Let us discuss them below.

Tax exemptions on Indigenous land
The main reason Native cigarettes Canada remain affordable is their tax exemption status across Indigenous reserves. First Nations residences located on reserves enjoy tax benefits, which exclude them from paying selected federal and provincial taxes. Native reserve tobacco retailers can sell their products free from the heavy taxation fees that standard cigarette brands must pay.

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