Tobacco Tax Act Review Project

Ministry of Finance consultations

July 2025

Consultation summary:

The majority of feedback received related to concerns about illicit tobacco.

The Ministry of Finance (the Ministry) heard that increasing quantities of illicit cigarettes are being offered for sale (including online) and that escalating illegal activity is negatively impacting authorized dealers’ sales. 

Retailers and wholesalers identified the need for urgent, increased enforcement against illegal tobacco sales and that enforcement requires dedicated inter-agency enforcement at street and retail levels, and should address tobacco, nicotine and vapour products.

Several suggestions respecting illicit tobacco were made including increasing fines, banning online sales, allowing for the seizure of vehicles used in relation to illicit tobacco, restricting the import of non-tobacco materials (such as acetate filters and papers, and machinery used to manufacture cigarettes), and increasing public awareness of the risks of illicit tobacco and its links to criminal activities.

Other feedback received included:

• General support for establishing an authorization to manufacture tobacco
• An authorization for transporting unmanufactured tobacco would have to be clear and include some flexibility

• A preference for increased inspections and enforcement to address the illicit tobacco trade rather than implementing more controls on authorized dealers
• Requests that the Ministry enable wholesalers to access a current list of active permit holders and suspended dealers to support compliance
• Considerations around changing the time at which tax is first imposed on tobacco in supply chains in and into B.C.

The feedback received will help inform the Ministry’s work on the project.

September 2024

Thank you for your interest in the Tobacco Tax Act Review Project. As of September 19, 2024, consultations are closed.

June 2024

The Ministry is undertaking a project to review the British Columbia Tobacco Tax Act and make recommendations to better reflect current practices in the tobacco industry, support improved administration including the ability to combat illicit tobacco, and streamline requirements. As part of the review, the Ministry is engaging in consultations and making recommendations for improvement.

The project does not include changes to the tax base or that impact provincial revenue. For example, the project does not consider changing tobacco tax rates or imposing any new tax.

The Tobacco Tax Act imposes tax on tobacco purchased in or brought into British Columbia. Tobacco includes cigarettes, loose tobacco (for example, fine cut, pipe or chewing tobacco), cigars, raw leaf tobacco, heated tobacco products, and other products that contain tobacco in any form. The legislation sets out tax administration processes and procedures, tobacco dealer permitting requirements, provision for tax-exempt sales to eligible persons, assessment and enforcement rules, and penalties for non-compliance.