New PST tax in British Columbia

[Armstrong-Joshua]

Hello,

Just found out today that I cannot buy unmanufactured tobacco from Whole Leaf tobacco in Canada without a 650% pst tax! My order was $60US and CBSA wanted to charge me $752.23 PST tax!

Apparently there’s been a new law in Canada this year which allows them to charge all tobacco products unmanufactured or manufactured this ridiculous figure.

Anyone with news about this please share.

Josh

 

[stdly]

Nooo! say it ain't so.
Ohio is just across Lake Erie from me and I know a couple people who own boats.

 

[Armstrong-Joshua]

Nooo! say it ain't so.
Ohio is just across Lake Erie from me and I know a couple people who own boats

Thanks for the sarcasm but I’d probably be better to grow it myself if I had land. I have grown it before it costs less than $5.00 for the seeds. Since when did something so cheap become so expensive in Canada? There’s a reason the states calls us ‘looney-twoonies’ Canadians shouldn’t have to suffer and pay like a quarter ounce of gold just to get it delivered to our address. Bonkers! Injustice! The weird thing is I haven’t had an issue for like 4 years. I don’t even think they’re legally allowed to charge this much as it is an agricultural commodity. There is so much anti-tobacco hate it’s concerning. It’s just a plant. It’s cheap to make. It helps people relax and even cures depression among other medicinal benefits. People should have full access and Canadians should have the same price as Americans. 650% more? What a headache.

 

[deluxestogie]

Apparently there’s been a new law in Canada this year

Do you have a citation for a government website that defines this new law?

Bob

 

[treecutter]

I've been looking at the government sites and so far I can find nothing related to 2024. I hope someone can clarify all this, perhaps WLT as a lot of Canadian customers like myself depend on them.

 

[ChinaVoodoo]

There appears to be nothing changed in the tax act

Tobacco tax

All tobacco products sold in B.C. are taxed. Find out the current tobacco tax rates and what you need to do to legally sell tobacco in B.C.

www2.gov.bc.ca

There is an update of an additional 7% pst collection on all forms of tobacco, based on purchase price. They have been careful to include "raw leaf tobacco". The PST applies to all tobacco, not just "tobacco products"
In the BC tax act, they do not list raw leaf and are therefore not regulated provincially.
https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/notice-2022-004-tobacco-sellers.pdf

So they are saying the only change above is that they are adding pst to tobacco on top of the price that includes the excise tax. There is no provincial excise tax on raw leaf. The federal excise tax is $1.57/kg.

So on a hypothetical 1kg of tobacco valuing $100 there should be $1.57 excise tax, $7.10 gst, and $7.10 PST.

They are screwing this up.

 

[stdly]

Those numbers seem a bit more in line.
This is for BC I wonder if it is the same across the country?

 

[Armstrong-Joshua]

Do you have a citation for a government website that defines this new law?

Bob

I asked the CBSA officer about this law and he replied “there is no law it’s the provincial government tax” I told him when this new change had taken place as I’ve been purchasing for 4 years and can provide receipts and he said “I don’t know when but you can look it up” I told him it’s unprocessed and an agriculture commodity and he said “no it’s tobacco don’t listen to what WLT tobacco company is telling you there telling you these thing because they want to sell to you” I asked him how come for last 4 years I’ve gotten it without this 650% tax. He said “I’m lucky to have had it without that amount and I should be grateful”

This was after my reassessment form was rejected. Apparently I’m the first person the reassessment form has been rejected from it usually works.

 

[Armstrong-Joshua]

Those numbers seem a bit more in line.
This is for BC I wonder if it is the same across the country?

This was bc but it was also rejected at customs in Toronto

 

[ChinaVoodoo]

Bullies.

 

[ChinaVoodoo]

The federal government act

Excise Duty Rates - Canada.ca

Rates of excise duty imposed on beer, cannabis, spirits, tobacco, vaping, and wine products

www.canada.ca

Obviously you know tobacco isn't just tobacco. The federal act is precise in its language and what it counts as a manufactured product and what is raw. BC hasn't specified raw leaf and the guy you talked to was wrong. BC included raw as needing the 7% gst, but they have not included it in the manufactured tobacco section of the BC excise tax act. They as a province clearly acknowledge the existence of raw tobacco as a legal category in the PST memo, so the only reason it isn't mentioned in the act is because they chose not to include it.

 

[Armstrong-Joshua]

I asked the CBSA officer about this law and he replied “there is no law it’s the provincial government tax” I told him when this new change had taken place as I’ve been purchasing for 4 years and can provide receipts and he said “I don’t know when but you can look it up” I told him it’s unprocessed and an agriculture commodity and he said “no it’s tobacco don’t listen to what WLT tobacco company is telling you there telling you these thing because they want to sell to you” I asked him how come for last 4 years I’ve gotten it without this 650% tax. He said “I’m lucky to have had it without that amount and I should be grateful”

This was after my reassessment form was rejected. Apparently I’m the first person the reassessment form has been rejected from it usually works.

Bullies.

The agent didn’t really convince me that this was legitimate. I mean how can it be so if the laws haven’t changed? Why they can’t tell me when they changed it? Why do some orders get charged and other don’t? I don’t think they’re doing this to all Canadian orders. Probably just picking at random to try to extort money. I dunno. I may have to quit smoking. I’m tired of the government taking all my money. I was just going to taste some perique for the first time! Maybe I should just move to the states lol

 

[ChinaVoodoo]

I think that the supposed 650% PST you referenced has got to be the 65¢/g provincial excise tax plus 9.3¢/g federal excise tax plus the 7% gst and 7% pst on the total for loose tobacco.

650% PST makes no sense. That would mean a pack of cigarettes crossing from Washington would be $80, but a local pack only $20.

 

[ChinaVoodoo]

Maybe I should just move to the states lol

Really not a terrible idea from what I've heard.

 

[crasch]

I was just going to taste some perique for the first time!

Could the issue be that it was specifically perique you were trying to import? If Perique is not considered "unprocessed" due to the, well, process that makes Perique Perique, then all the excise tax stuff could apply.
Just bringing in a batch of truly unprocessed air cured could be fine as usual. You could then process it yourself into perique.
Not Canadian here, so maybe I shouldn't insert myself, but just a thought.

 

[ChinaVoodoo]

At over $700, that would need to be 2lbs of perique, and I'm guessing that's not the case.

 

[Armstrong-Joshua]

yeah it was 2lb of Virginia. And a half pound of perique. My last order had Latakia where I was not charged I don’t think that’s the case. They definitely had a “I’m right you’re wrong” attitude regarding this. It was like talking to a brick wall. Their laws haven’t changed but it may be they decide to charge for over a Kilo. 2.5lbs is just over a kilo. The charge is ridiculous and if it’s not implemented to all orders it’s technically illegal. CBSA IS not following their own laws posted on their website. They haven’t been implementing this 650% pst law for at least 4 years. I know this because I’ve been purchasing for 4 years without a problem. Now apparently the raw tobacco is being charge the same as manufactured. Whether they’re legally allowed to make the charge I’m not sure. It seems fishy.

 

[grapers]

The agent didn’t really convince me that this was legitimate. I mean how can it be so if the laws haven’t changed? Why they can’t tell me when they changed it? Why do some orders get charged and other don’t? I don’t think they’re doing this to all Canadian orders. Probably just picking at random to try to extort money. I dunno. I may have to quit smoking. I’m tired of the government taking all my money. I was just going to taste some perique for the first time! Maybe I should just move to the states lol

I’m very confused by the new duty amount as well. For several years I’ve been importing 2lbs with only a duty of $15 since the changes in April 2023.
In December I ordered 2lbs from WLT, it was held by customs for a few weeks (probably due to holiday season) and then showed up with $600 assessment.
I figured this was due to temporary seasonal staff at CBSA. I figured I would try again while CBSA reassessed my parcel. The second parcel has arrived in Canada and it has an assessment of $747
I would love feedback or suggestions to help me sort through this.
Thanks

 

[MereAlien]

As you can see, I have had the same thing happen with my order of 5lbs order. They can't charge this much PST. I don't know what to do. The post office is holding my package for a few days while I sort it out, but wth?

I have been ordering for 5+ years and have never been charged more than 20 or 30 bux.

 

[MereAlien]

I just spoke to the BC tax folks and they say that there's a 65¢ per gram tax on all tobacco products for BC - which includes whole leaf tobacco. They are emailing me the relevant information.