Nunatsiaq Online
NEWS: Around the Arctic March 27, 2017 - 10:00 am

Federal tobacco, alcohol tax hikes will hit Nunavut, Nunavik

Increase comes on top of Nunavut's increases to tobacco taxes

NUNATSIAQ NEWS
This cigarette is costing you more after the March 22 federal budget which increased taxes on tobacco products, as well as on alcohol. (FILE PHOTO)
This cigarette is costing you more after the March 22 federal budget which increased taxes on tobacco products, as well as on alcohol. (FILE PHOTO)

If you’re a smoker and you drink alcohol in Nunavut or Nunavik, be prepared to pay more in the future.

In fact, you have already been paying more since March 23, when tax increases on tobacco and alcohol came into force with the adoption of the federal budget.

In Nunavut, these new tax increases will raise prices for cigarettes and chewing tobacco above and beyond the territorial tax passed during the last legislative sitting.

The new federal budget increases the excise duty rate on cigarettes from $.52575 to $.53900 for each five cigarettes—so about four or five cents a pack.

And even inventories of cigarettes held by manufacturers, importers, wholesalers and retailers at the end of March 22 will be subject to a tax increase of $.00265 per cigarette, which consumers are likely to pick up through price increases.

The budget also proposed a corresponding increase in the excise duty rate on tobacco sticks from $.10515 to $.10780 per stick and on manufactured tobacco (chewing tobacco or fine-cut tobacco for use in roll-your-own cigarettes) from $6.57188 to $6.73750 per 50 grams or less.

Excise duty rates on alcohol products were also increased by two per cent, effective March 23.

For spirits like vodka, this will mean an increase of about three cents per litre, for most wine, about a cent per litre, and for beer about 50 cents per 100 litres.

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