Effective April 1, 2014, the tobacco tax rates will increase.
Tobacco tax is charged on all tobacco products sold in B.C., including:
Tobacco tax is paid by the customer, but the amount of tax collectable for the tobacco must be secured. Wholesale dealers must secure the tax collectable for the tobacco by paying security for the tobacco to the province. The security is an amount equal to the tax due on the retail sale of the tobacco.
When a wholesale dealer sells tobacco to a retail dealer security paid for the tobacco is collected from the retail dealer to reimburse the wholesale dealer. The retail dealer is reimbursed by the tax collected from the customer.
|22.3 cents per cigarette or tobacco stick
$4.46 per pack of 20
$5.58 per pack of 25
$44.60 per carton of 200
|Loose Tobacco||22.3 cents per gram|
|Cigars||90.5% of the taxable price or the retail price, to a maximum of $7 per cigar|
In certain circumstances, tobacco can be sold tax exempt.
Tobacco tax doesn’t apply to tobacco intended for tax-exempt retail sales. You must hold an Exempt Sale Retail Dealer (ESRD) permit to sell tax-exempt tobacco products, such as:
Only tobacco products that bear the federal government’s black stock mark may be sold tax exempt. The federal government’s black stock mark is a peach or clear tape or stamp placed on:
ESRDs may only purchase black stock tobacco from a registered wholesale dealer. For details on selling tax-exempt tobacco products to qualifying customers, see the bulletin Exempt Sales Made by Retail Dealers (TTA 001) (PDF).
Diplomatic or consular agents and certain diplomatic or consular staff in Canada may purchase tax-exempt tobacco. For details, see the bulletin Exemption for Members of the Diplomatic and Consular Corps (CTB 007) (PDF).