Increased Tobacco Revenue to Go Towards Health Care

Manitoba Post StaffNews

WINNIPEG -The Province has introduced proposed legislation that will keep the price of tobacco the same once the PST is decreased to 7% on July 1.

Finance Minister, Scott Fielding also said that any revenue associated with the adjustment will go towards health care.

The proposed changes mean the tax on each cigarette would be 30 cents, up from 29.5 cents; fine cut tobacco would be 45.5 cents per gram, up from 45 cents; and raw leaf tobacco products would be 27.5 cents per gram, up from 27 cents.

Fielding noted this approach is consistent with the measures the federal government implemented when it reduced the GST and adjusted its excise duty to maintain the retail selling price of tobacco.

The proposed amendments to The Tobacco Tax Act would come into effect on July 1 if the bill receives royal assent before the legislative assembly rises on June 3, or on Nov. 15 if it receives royal assent on or after July 1.

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