Tobacco Charges Regulations Guide: Annual charge
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Description
The annual charge is the amount, in Canadian dollars (CAD), that a designated manufacturer (herein referred to as “manufacturer”) must pay each fiscal year in order for the Government of Canada to recover the costs of the previous fiscal year’s tobacco-related activities (annual cost base).
Your annual charge is proportional to your share of total domestic tobacco product net sales revenue in the previous fiscal year. Health Canada calculates it using: (1) the annual cost base to be recovered, (2) each manufacturer’s total domestic tobacco product net sales revenue, and (3) the total net sales revenue of all manufacturers in the domestic market (see section Charge calculation for details). The fiscal year runs from April 1 to March 31.
Annual cost base
Each year, Health Canada determines the annual cost base to be recovered using the actual federal costs incurred for included tobacco-related activities from the previous fiscal year. Included costs cover tobacco-related activities undertaken by the Government of Canada in relation to the carrying out of the purpose of the Tobacco and Vaping Products Act. The annual cost base will vary year to year.
Starting with the 2026–27 Report on Fees, Health Canada will report each year on tobacco program costs and revenues from the cost recovery framework in the Departmental fees report.