Effective January 1, 2018, the tobacco tax rate increases by 0.8 cents to 24.7 cents per cigarette or gram of tobacco. You need to submit an Inventory Return due to this change. We will be contacting all dealers on how to file and pay.
Tobacco tax applies on all tobacco products sold in B.C., including cigarettes, tobacco sticks, cigars, loose tobacco products (e.g. fine cut, pipe or chewing tobacco) or other products that contain tobacco in any form.
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 products 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.
Effective January 1, 2018, the tobacco tax rate increases by 0.8 cents to 24.7 cents per cigarette or gram of tobacco.
Dealers must submit an inventory return and calculate the tobacco tax increase on any inventory in stock at the end of day on December 31, 2017. The new tax rate will apply on all tobacco products sold on or after January 1, 2018.
Tax Rate Until December 31, 2017
Tax Rate Effective January 1, 2018
|23.9 cents per cigarette or tobacco stick
$4.78 per pack of 20
$5.98 per pack of 25
$47.80 per carton of 200
|24.7 cents per cigarette or tobacco stick
$4.94 per pack of 20
$6.18 per pack of 25
$49.40 per carton of 200
|Loose Tobacco||23.9 cents per gram||24.7 cents per gram|
|Cigars||90.5% of the taxable price or the retail price, to a maximum of $7 per cigar||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, such as:
- sales to First Nations individuals and bands on First Nations land
- duty-free shops
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:
- packages, cartons and cases of cigarettes
- fine cut tobacco products
You must hold an Exempt Sale Retail Dealer (ESRD) permit to sell tax-exempt tobacco products.
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 Sales to First Nations and the Tobacco Tax Exemption Program (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).