Native cigarettes are made and marketed by businesses that belong to Indigenous people. Many of these brands, like Canadian Goose, are produced on Indigenous land, meaning these cigarettes are often not subject to federal and provincial taxes.
Since these products originate from territories where the law permits their production, their cost structure differs from that of tobacco products sold in other areas. Still, you may wonder how their prices are so affordable. What is the main reason for those cheaper goods? Here is a more detailed explanation:
Tax differences
Cigarette sales in Canada are taxed by the federal and provincial governments. You will find these taxes on every pack you buy at convenience stores, gas stations, and various retailers. They usually amount to more than half the final price. In certain regions, the high tax rate can increase the cost of a single case above C$140.
Meanwhile, cigarettes sold on First Nations territories are not subject to the same regulations. Status Indigenous individuals on reserve do not have to pay federal or provincial taxes when purchasing tobacco. In some areas, even people who are not Indigenous can pay less tax by shopping at Indigenous-owned businesses on reserve. This is why you are able to buy native smokes for less.
Local manufacturing by the community
Low prices also happen because many locally produced Indigenous cigarette brands are made within the community itself. Most of these companies are small and operate by producing, packaging, and distributing their products locally.
Being small and skipping national ads, famous sponsors, foreign deliveries, and broad distribution expenses allows them to work on a smaller budget. Production is more important to them, so they save on costs which the customers enjoy.
Direct-to-buyer sales
The majority of native cigarettes are sold either directly to customers at community centers or through known community intermediaries. Therefore, there are no distributor commissions, warehouse expenses, fees for shelf space at chains, or higher costs from resellers.
Purchasing directly from the producer keeps the price lower. Customers sometimes have the chance to buy from a local Indigenous shop, talk to the seller, and take home a product that hasn’t been handled by several people.
However, not all provinces permit non-Indigenous people to buy native cigarettes on reserves; the rules differ from one region to another. Usually, it is legal to purchase tobacco on reserve, but the purchase has to follow both the local laws and the rules of the First Nation.
There are communities that focus on sales to Indigenous customers, and there are those that cater to anyone interested. You should always comply with the laws and buy your products directly from shops managed by Indigenous people.
Summing up
Many Canadians who live in the countryside or find cigarettes too expensive still turn to native cigarettes. Besides the financial benefits, some smokers also believe they are helping Indigenous companies and getting a flavor they like best.
Still, you should note that these cigarettes often do not follow the same regulations as traditional store brands. What a native cigarette contains, how much nicotine it features, and the details of its production may change. So, if you prefer to know what goes into your smoke, this is an important fact to remember.
