NLIS 24
March 27, 2003
(Finance)
 

Tobacco tax rate increases announced

Finance Minister Joan Marie Aylward announced today that effective 12:01 a.m. March 28, 2003 there will be an increase in the tobacco tax rates for manufactured cigarettes and fine cut tobacco.

The new tobacco tax rates will be:

• A 1.5 cent per cigarette increase for manufactured cigarettes, bringing the tax per cigarette to 15 cents from 13.5 cents. A carton of manufactured cigarettes will increase by $3.45.

• A four cents per gram increase for fine cut tobacco, bringing the tax per gram to 15 cents from 11 cents. The price of a 200-gram container of fine cut tobacco will increase by $9.20.

"While the overall rate of smoking in this province has decreased, price increases should contribute to a further decline and can be effective in reducing or eliminating smoking by youth," Minister Aylward said, noting that a reduction in the smoking rate also reduces the number of smoking-related illnesses and related health care costs.

"If people do not begin smoking at an early age they are less likely to become addicted to tobacco."

Since 2000, smoking rates of those aged 15 to 19 in this province have dropped from 28 per cent to 22 per cent. "We want to ensure there is an even greater reduction for all ages, but particularly for those in their early teens," Minister Aylward said.

The tobacco tax rate increases announced today do not apply in the Labrador border zones where reduced tax rates apply to help mitigate a serious cross-border shopping problem that existed in Labrador communities close to the border with Quebec.

Media contact: Josephine Cheeseman, Communications, (709) 729-0329.

2003 03 27                                       3:45 p.m.