Tax and Revenue Administration Alberta Tobacco Tax Act Information Circular  TTA-8

TTA-8 / September 2006

ALBERTA TOBACCO TAX ACT INFORMATION CIRCULAR:
ALBERTA TOBACCO TAX RATES

NOTE: This Information Circular is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this Information Circular and governing legislation, the legislation takes precedence.

This Information Circular sets out the tax rates for tobacco in Alberta.

Tax Rates

• Cigarettes – 16¢ per cigarette (effective March 20, 2002)
• Tobacco sticks – 16¢ per tobacco stick (effective March 20, 2002)
• Cigars – 95% of the “taxable price” (see below) of the cigar, with the minimum tax being 15 cents per cigar and the maximum tax being $5 per cigar (effective August 1, 2003)
• Any other tobacco product – 16¢ per gram or part of a gram (effective March 20, 2002)
  

“Taxable Price of a cigar” means 1.3 times one of the amounts below:

• if the cigar was manufactured in Canada
  
  • the manufacturer's selling price, including any charges for transportation, any duty and excise tax imposed, but excluding GST.
    
    
• if the cigar was manufactured outside Canada
  
  • the importer's selling price including any charges for transportation, any duty and excise tax imposed, but excluding GST.
    
    
• If the manufacturer or importer of a cigar is also a cigar retailer then the taxable price of the cigar is the price paid by the consumer including any charges for transportation, any duty and excise tax imposed, but excluding GST.