News Release Archive
FINANCE--NO CHANGE IN TOBACCO PRICES UNDER HST ----------------------------------------------------------------- Finance Minister Bill Gillis announced today that the price of tobacco products will remain the same under the Harmonized Sales Tax (HST) when it is introduced on April 1, 1997. "We announced last spring that the HST would not result in any change for consumers when it came to tobacco," Bill Gillis said. "Now we are following through on that commitment." On April 1, 1997, the HST will be charged at 15 per cent on tobacco products sold through retail outlets. Currently, Nova Scotia only has a tobacco tax at the wholesale level and the 7 per cent Goods and Services Tax (GST) is added at the retail level. As a result of the decision to keep the cost to consumers the same, Nova Scotia will be adjusting its tobacco taxes to offset the impact of the HST. A bulletin to tobacco wholesalers was sent out yesterday by the Department of Business and Consumer Services. Details on the tax rates involved and refunds for tobacco products held in inventory will be released shortly. -30- Contact: Bruce Cameron 902-424-8787 trp Mar. 25, 1997 - 3:50 p.m.