Federal and Provincial Tobacco Taxes to Rise

Nova Scotia is joining four other provinces and the federal government in raising tobacco taxes. The increase goes into effect at midnight tonight.

"This co-ordinated action balances two concerns," Finance Minister Neil LeBlanc said today. "We want the cost of smoking to rise far enough to discourage young people from starting to smoke, and yet, we want to make sure the cost doesn't rise so fast that smugglers resume large-scale operations."

The Department of Health is working on a series of companion measures to discourage smoking in the province. The measures will focus on long-term education and prevention strategies to discourage young people from smoking.

As well, there will be new initiatives to help smokers who want to quit and strategies to curb smoking among pregnant women and people at risk, such as those with respiratory disease. The work needed to create these programs is expected to completed by next spring.

"These measures are part of our mandate commitment to devote more money to fighting tobacco addiction," said Premier John Hamm. "Preventing our young people from taking up this terrible habit, and helping others kick it, are some of the most effective steps we can take in improving the long-term health of Nova Scotians."

The increase in the direct tobacco tax is six cents by the province and six cents by Ottawa per pack of 20 cigarettes for a total increase in tobacco taxes of 12 cents. On a carton of 200 cigarettes the total tobacco tax increase is $1.20. The other provinces raising taxes are New Brunswick, Prince Edward Island, Quebec and Ontario.

Mr. LeBlanc said tobacco tax revenue estimates this fiscal year are not expected to change because the year is more than half over. He said, in addition, the latest trends suggest some decline in consumption and the tax increase is expected to further reduce consumption.

More information may be found in a Tax Bulletin to Nova Scotia Wholesalers and Retailers at: http://www.gov.ns.ca/bacs/taxcomm/5030.htm

and at the Federal Department of Finance:
http://www.fin.gc.ca under news releases .