Bad news for smokers across BC: the government is introducing a new provincial sales tax on all tobacco products, going into effect on July 1 this year.
They predict the tax will pull in around $78 million in PST for 2022/2023.Â
In 2023/2024, it will generate even more: an approximate $84 million.
“British Columbia has effectively given up its fight against contraband tobacco”, says Anne Kothawala, CICC President & CEO.
Read our response to BC’s increase on tobacco tax as part of today’s #BCBudget announcement https://t.co/wbMlN65qIp#bcpoli pic.twitter.com/yZUdLYxM3Y— Convenience Industry Council of Canada (@ConvenienceCan) February 22, 2022
Tobacco tax revenue is projected to be relatively flat over the next three years, says the provincial government’s 2022 budget.Â
“Applying provincial sales tax to tobacco will align BC’s tax policy with the majority of other provinces which, in addition to imposing a specific tobacco tax, apply either a provincial sales tax or the provincial portion of the harmonized sales tax to tobacco,” it reads.Â
- You might also like:
- TransLink to officially ban smoking and vaping with new rule, $150 fine
- You can now be fined $500 for tossing a cigarette butt in Vancouver
- Vaping among Canadian teens has jumped 74% in one year: Study
The report says revenue from the tax will “help BC offset the costs to the healthcare system that result from tobacco consumption, thus improving health outcomes.”Â
And BC predicts tobacco revenue will reach $740 million this fiscal year but stay at $760 million for the following three fiscal years, not including PST.
The new tax will also help the government “capture additional revenue when tobacco companies raise their prices” — citing a 220% pre-tax price increase on cigarettes over the last 20 years.
“Smoking rates are higher among men and lower-income individuals. These populations will bear a greater proportion of the tax increase,” it says.
Some industry players have weighed in on social media to say the tax could encourage a black market of tobacco vendors trying to get around paying extra. Others voiced their support for the initiative’s economic impact.
The BC tax increase on tobacco is directly feeding in the illegal market. Listen to Imperial Tobacco Canada’s spokesperson Eric Gagnon explaining why in this interview: https://t.co/Dr9C2iOePe#BCgovernment #excise #taxeincrease pic.twitter.com/anCQ1B6GDQ
— Imperial Tobacco Canada (@ITCANNews) February 26, 2018
Overall, it’s a tough time for smokers coping with the stress of the pandemic, the rising cost of living, booming grocery and gas bills, and now this.
To save some bucks, it may be a good idea to get a nicotine patch or gum ahead of July.