Tax and Revenue Administration Alberta Tobacco Tax Act Special Notice Vol. 3 No. 14

Vol. 3 No. 14 / January 2012

ALBERTA TOBACCO TAX ACT SPECIAL NOTICE:
CHANGES TO TOBACCO MARKING REQUIREMENTS

NOTE: This special notice 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 special notice and governing legislation, the legislation takes precedence.


The Tobacco Tax Amendment Regulation (the Regulation) was approved by the Lieutenant Governor in Council on December 15, 2011. The Regulation comes into effect on April 1, 2012 with the transition period described below, and the following changes required to adopt the new federal tobacco stamping regime in Alberta.

Summary of changes

• Effective April 1, 2012, all packages of cigarettes, tobacco sticks and fine cut tobacco will be required to be marked with the new Alberta stamp (see illustration below) instead of the current red tear tape.
• The new marking requirements will not apply to products, such as raw leaf, cigars, pipe tobacco, smokeless tobacco and other loose tobacco, that did not previously require the red tear tape.
• The marking requirements for cartons and cases will not change.
• Alberta stamps are available in the following denominations:

cigarettes - 20 units	tobacco - 150 grams
cigarettes - 25 units	tobacco - 200 grams
tobacco - 50 grams	tobacco - 250 grams
tobacco - 100 grams	tobacco - 400 grams

• Alberta will not authorize a 200-cigarette pack stamp.
• Alberta stamp illustration:

Obtaining Alberta Stamps

• Manufacturers and importers can obtain Alberta stamps through the Canada Revenue Agency using the established process to obtain federal excise (tobacco) stamps. For more information, contact the federal excise stamp order desk at:

Excise Stamp Order Desk
Canada Revenue Agency
Excise Duties and Taxes Division
Strategic Policy and Program Improvement
320 Queen Street, 20th floor
Ottawa, ON K1A 0L5
Telephone: 613-952-0664
Fax: 613-954-2226
Email: Tobacco.stamp@cra.gc.ca

Transition

• The new marking requirements are effective April 1, 2012, and include a six-month transition period to allow manufacturers and importers time to adopt the new Alberta stamp.
  
  
• As of October 1, 2012, the new Alberta stamp will be required on all packages of cigarettes, tobacco sticks and fine cut tobacco manufactured or imported for tax-paid sale in Alberta.
  
  
• For a limited time after October 1, 2012 both the new Alberta stamp and/or the current tear tape may appear on packages of cigarettes, tobacco sticks and fine cut tobacco available for tax-paid sale in Alberta.