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April 5, 2001
2001-040
Statement by the Honourable Paul Martin, Minister of Finance for Canada, on the Government’s Comprehensive Strategy to Discourage Smoking
Ottawa, Ontario
April 5, 2001
Related document:
- News Release 01-039 (Government Announces Comprehensive Strategy to Discourage Smoking.
Delivered text is official version.
Thank you Allan.
Our new anti-tobacco strategy includes a number of important tax measures – all designed to support the Government’s health objectives and reduce tobacco consumption – particularly among young Canadians.
First, as of midnight tonight, there will be a combined federal-provincial tax increase of $4 per carton in New Brunswick, Prince Edward Island, Nova Scotia, Ontario and Quebec.
Second, there will be a corresponding federal excise tax increase of $1 per 200 grams of fine-cut tobacco and $1 per carton of tobacco sticks. This measure will apply in all provinces and territories.
Third, the tobacco manufacturers’ surtax will be increased to 50 per cent from 40 per cent.
These tax increases are part of a new tobacco tax structure being put in place to reduce smoking and the incentive to smuggle. In addition, these changes should enable us to increase tobacco taxes further in the future.
The main element of this new structure will be an export tax on Canadian tobacco products, which will take effect at midnight tonight.
Other elements include taxing cigarettes and other tobacco products to be sold in duty-free shops and as ships’ stores. We are also amending the traveller’s exemption to ensure that tax is paid on tobacco products imported by returning residents.
Finally, we are giving more resources to federal departments and agencies so that they can better monitor and assess the effectiveness of these measures in reducing smuggling.
In closing, let me just emphasize that the government is fully committed to reducing tobacco use. This new strategy demonstrates the depth of that commitment.
On that point, let me now turn things over to the Solicitor General.
Thank you.
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| Last Updated: 2002-11-26 |
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