Tobacco Prices Increasing
The price of cigarettes in Nova Scotia is increasing by $4 a carton, effective midnight tonight, April 5. The increase is a combined federal-provincial initiative and will also occur in New Brunswick, Prince Edward Island, Quebec and Ontario.
Finance Minister Neil LeBlanc said the increase represents a balance between the need to discourage smoking, especially among young people, but not to the point that the price increase creates a market for illegal tobacco.
"We’re very conscious of the health argument regarding the price of cigarettes," Mr. LeBlanc said. "However, we’ve learned that when tobacco prices are much higher people will break the law by smuggling and buying illegal tobacco products."
The Department of Health is working on a comprehensive strategy to reduce smoking in Nova Scotia, which will include smoke-free legislation. A portion of the tax revenue will be used to support new programs planned as part of the strategy, to be released later this year. Health Minister Jamie Muir welcomed the announcement as another punch in the department’s fight against smoking.
"This increase is another step forward in our plan to develop and implement a comprehensive tobacco strategy," Mr. Muir said.
The $4 increase is being split differently in each province as the federal tobacco tax differs from province to province. In Nova Scotia, the split will be $3.90 to the province and 10 cents to Ottawa. The federal rate on tobacco sticks, which are inserted into paper tubes, will increase by $1 per carton, and the rate on fine-cut tobacco will increase by $1 per 200 grams. The provincial rate on these products will also increase, by $3.08 and $2.72, respectively.
The minister added that he was pleased the federal government will be implementing measures to combat tobacco smuggling, as the illegal sale of tobacco is a major concern when prices increase. Staff from Service Nova Scotia and Municipal Relations will be communicating with tobacco retailers and wholesalers to ensure the new tax is applied to current inventory sold after midnight tonight.