NLIS March 30, 2004 (Finance) Tobacco Tax Increase Loyola Sullivan, Minister of Finance and President of Treasury Board, today announced an increase in tobacco taxes. The increase is effective 12:01 a.m. March 31, 2004 and applies to all wholesale and retail sales from that time. The tobacco tax on manufactured cigarettes will increase from 15 cents to 16 cents each and, for fine-cut tobacco, it will increase from 15 cents per gram to 20 cents per gram. Since two roll-your-own cigarettes can be made from a gram of tobacco, the effective tax rate per roll-your-own cigarette will increase from 7.5 cents to 10 cents. "This initiative will assist with government�s tobacco reduction strategy and increase revenues to the province," said Minister Sullivan. Wholesalers are required to collect the new rate of tax from 12:01 a.m. on March 31, 2004. Retailers are required to take an inventory of tobacco products effective from that time, and submit a tax return and the additional tax to the Department of Finance. Tobacco tax rates in designated Labrador border zones are not affected by this increase. Responsibilities of retailers and wholesalers
Labrador border zones
Media contact: Diane Keough, Communications (709) 729-6830 2004 03 30 3:30 p.m. |
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