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ARTICLE · 01 MARCH 2018

Tobacco And Cannabis Taxation

McCarthy Tétrault
McCarthy Tétrault
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McCarthy Tétrault

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On February 27, 2018, Finance Minister Bill Morneau tabled in the House of Commons the Liberal Government's third budget, Equality + Growth = A Strong Middle Class ("Budget 2018").

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On February 27, 2018, Finance Minister Bill Morneau tabled in the House of Commons the Liberal Government's third budget, Equality + Growth = A Strong Middle Class ("Budget 2018").  Budget 2018 contains tax measures  in respect of tobacco and cannabis.

Tobacco Taxation

Budget 2018 proposes to advance the existing inflation adjustments on tobacco excise duty rates on an annual basis to take effect on 1 April of each year starting in 2019, rather than every five years, with an adjustment effective February 28, 2018 to account for inflation since 2014.

Budget 2018 also proposes to increase the excise duty rates by an additional $1 per carton (200 cigarettes), along with corresponding increases to the excise duty rates on other tobacco products. In addition, inventories of cigarettes held by manufactures, importers, wholesalers and retailers at the end of February 27, 2018 will be subject to an inventory tax of $0.011468 per cigarette (subject to certain

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