Canada tobacco Tax Law Changed

[Lakota]

It looks like Canada has changed the laws on import of all tobacco products ( if I read this right), the raw leaf that we buy must have a Canada Duty Paid stamp. The new duty is just under 150.00 Canadian dollars for 1 kilo ( 2.2 lbs). I hope I am reading this wrong. Let me know what you see in this new law.


https://www.canada.ca/en/revenue-ag...anges-excise-duty-rates-tobacco-products.html

 

[FmGrowit]

Raw leaf tobacco $1.572 per kilogram

 

[ChinaVoodoo]

Lakota,
You've read that wrong. First, it says that only bolded amounts are new. It states that it is still $1.57/kg.
Secondly, I take it you've gotten your $150/kg figure from this line:

Tobacco products other than cigarettes and tobacco sticks $149.09 per kilogram

However, as read in the Alberta tax act, raw leaf tobacco is not legally defined as "tobacco product".

(q) “tobacco” means tobacco in any form in which it is used or consumed, and includes snuff;
(r) “tobacco products” means cigarettes, tobacco sticks and fine cut tobacco;

Also, from the Ontario government: https://www.fin.gov.on.ca/en/tax/tt/rawleaf.html

Tobacco product means tobacco that is in a form in which it is used or consumed by a consumer, and includes cigarettes, cigars, fine cut tobacco and snuff.

tobacco oversight is not about imposing a new tax – it's about effective monitoring. Provincial tobacco tax only applies to tobacco once it is in a state where it may be consumed (e.g., cigarettes, cigars or fine cut tobacco). The tax does not apply to the growing, processing, or dealing of raw leaf tobacco

The provinces don't have separate legal definitions for what defines tobacco or tobacco products. It's safe to say that raw leaf regulations have not changed.

 

[ChinaVoodoo]

We benefit from the rate, personally, but it is a simple tax which (I think) has the intention of balancing tobacco prices for importers, farmers, and manufacturers, and for documenting importation. Our personal use is miniscule relative to the overall trade of tobacco.

An increase in raw leaf taxes by that amount would devastate any tobacco manufacturer in Canada who imports tobacco. It would be very unfair, and violate the principles of free trade. To make a change like that would require a major overhaul of the structure of the tax system.

 

[Lakota]

Thanks Looks like I read it wrong.

 

[burge]

You scared me half to death there lol. In Canada like China said and to add for transporting tobacco from reserve to reserve in Ontario that you had to have a manufacturing license. That ruling made it easier to import tobacco leaves providing your within your allowable limit.