Thursday, March 26, 2015

Tax on a carton of smokes to increase by $5

According to Budget 2015 released by the Government of Alberta earlier today, the tax on a carton of 200 cigarettes will increase by $5 to $45 and the tax on loose tobacco will rise by 3.75 cents per gram to 33.75 cents per gram, maintaining Alberta’s policy of taxing cigarettes and loose tobacco at parity. The levy on cigars will also be increased. The tax rate applied to a cigar’s taxable price will rise from 103 per cent to 116 per cent. The minimum and maximum tax per cigar will also rise from 20 cents to 22.5 cents, and from $6.27 to $7.05, respectively.

The increases are estimated to generate an additional $90 million annually. The last time that tobacco tax in Alberta increased was in 2009.

The increase is effective at 12:01 am March 27.

Related link: Budget 2015 press release

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