Effective 12:01 am, April 5 , 2002 tobacco tax will increase on cigarettes, pre-proportioned sticks and fine cut with the exception of cigars and other tobacco products.

The following Tobacco Tax Rates will be effective 12:01 am, Friday, April 5, 2002.

Please note the tobacco tax rate for cigars and other tobacco has not changed. The tobacco tax rate for cigars remains at 56% of the suggested retail selling price and the tobacco tax rate for other tobacco products remains at $.0426 per gram.

Tobacco Wholesalers and Retailers - Inventory

Tobacco Wholesalers and Tobacco Retailers who hold a tax paid inventory are required to self assess on the difference between the old rate and the new rate on a separate inventory return form and forward this amount to Service Nova Scotia and Municipal Relations. Payment is due by April 26, 2002 and should be made payable to the Minister of Finance. An inventory return form is attached.

Question:

What must a tobacco wholesaler count as inventory for calculating the additional tobacco tax ?

Answer:

All cigarettes, pre-proportioned tobacco sticks and fine cut excluding cigars and other tobacco products must be counted by a wholesaler and shall include:

a) all of the above noted product stored in warehouses, store rooms, cash and carry outlets, retail outlets (if wholesaler operates a retail outlet), display areas, delivery trucks or any other location where tobacco products are stored;

b) product ordered from the wholesaler before April 5, 2002, but not sold and not removed from the wholesaler's inventory; and

c) product purchased by the wholesaler prior to April 5 , 2002, but received after the inventory count.

Question:

What must a tobacco retail vendor count as inventory for calculating the additional tobacco tax ?

Answer:
All cigarettes, pre-proportioned tobacco sticks and fine cut excluding cigars and other tobacco product must be counted by a retailer and shall include:

all the above noted product stored in store display areas, store rooms, and any other location where tobacco products are stored;

product purchased by the retailer prior to April 5, 2002 but received after the inventory count.

Nil Remittances:
Please note an inventory return form is required to be submitted for Nil Remittances.

Tobacco Tax Remittance Form

Service Nova Scotia & Municipal Relations
Program Management and Corporate Services Division
1505 Barrington Street, 8th floor
Halifax , Nova Scotia
PO Box 755
Halifax, NS
B3J 2V4
Telephone: (902) 424- 6300 (Metro area); or
1-800-565-2336 (toll free in Nova Scotia)

Web site address: http://www.gov.ns.ca/snsmr/taxcomm/

"Tax Information Bulletins are published by the Program Management and Corporate Services Division for the sole purpose of providing information and to announce changes in the Revenue Act or Sales Tax Act and the regulations. Tax Information Bulletins do not replace the law found in the Act or regulations. Bulletins are provided for reference purposes only. For legislative approved text of provisions of the Revenue Act or Sales Tax Act and Regulations, see official volumes."