Tax and Revenue Administration Alberta Tobacco Tax Act Information Circular TTA-8R2

TTA-8R2 / October 2009

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, effective 12:01 a.m. April 8, 2009

Cigarettes and Tobacco Sticks

• 20 cents for each cigarette
  
• 20 cents for each tobacco stick

Tobacco

Cigars

• 103% of the taxable price of the cigar.
  
• The minimum tax will be $0.20 per cigar and the maximum tax will be $6.27 per cigar.

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

• if the cigar was manufactured in Canada and the manufacturer is not the retailer
  
  
  • the manufacturer’s selling price before any volume discounts, including any charges for transportation and any duty and excise tax, but excluding the goods and services tax (GST).
    
    
• if the cigar was manufactured outside Canada and the importer is not the retailer
  
  
  • the importer’s selling price before any volume discounts including any charges for transportation, and any duty and excise tax, but excluding GST.

"Importer's selling price" is the greater of

• the price charged by the importer, or
• the price charged by a party to whom the importer sells the cigar and with whom the importer does not deal at arm’s length.

If the manufacturer or importer of a cigar is also a cigar retailer the taxable price of the cigar is the price paid by the consumer, including any charges for transportation and any duty and excise tax, excluding GST.