Increased taxes on fine cut tobacco and manufactured cigarettes

Finance Minister and President of Treasury Board Joan Marie Aylward announced that, effective immediately, the tax on fine cut tobacco and manufactured cigarettes has been increased. The tobacco tax has increased by 3.67� per gram on fine cut tobacco and by 2.5� per manufactured cigarette. This change will mean an increase in tobacco tax of $7.34 on a 200 gram tin of fine cut tobacco and an increase of $5.00 on a carton of manufactured cigarettes.

"Increasing the cost of tobacco will help reduce smoking, particularly among our youth. Anti-smoking groups and health advocates have long called for higher tobacco taxes as a method to discourage smoking," said Aylward.

The increased taxes will result in approximately $14.5 million in additional revenue for 2002-2003. A decrease in tobacco consumption will result in a healthier population which will ultimately require less health care. A healthier workforce will result in higher productivity and an improved economy.

Media contact: Tara Laing, Communications, (709) 729-0329.

2002 03 21                              3:00 p.m.