Tobacco Tax - Introduction

This section provides general information on Tobacco Tax including legislative authority, licensing, tax collection and tobacco compliance.

What is Tobacco Tax?

Under the Tobacco Tax Act and Regulations a tobacco tax is charged on all consumer purchases of tobacco products including cigarettes, cigars, tobacco sticks and fine cut tobacco.

How is Tobacco Tax collected?

Tobacco manufacturers, wholesalers and retailers act as agents for the Minister of Finance in the collection of the tobacco tax from the consumer.

Tobacco manufacturers and wholesalers who are active in Prince Edward Island must apply to the Provincial Tax Commissioner for a license to operate in the province. Licensing information and applications can be found in the section Tobacco Manufacturer and Vendor Licensing.

Tobacco retailers who are active in Prince Edward Island must apply to the Provincial Tax Commissioner for a license to operate in the province. Licensing information and applications can be found in the section Tobacco Manufacturer and Vendor Licensing.

How do consumers pay Tobacco Tax?

Tobacco Tax is included in the price of tobacco paid by consumers. Tobacco retailers are reimbursed for the tobacco tax paid to tobacco wholesalers by collection of the tax from consumers.

What is legal tobacco?

All tobacco except for pipe tobacco, snuff, chewing tobacco and cigars sold in Prince Edward Island is required to be specifically marked with a Nova Scotia tobacco stamp. The Nova Scotia tobacco stamp is a modified federal tobacco excise stamp with a background colour of Pantone purple and the letters “NS” printed on the stamp. Pipe tobacco, snuff, chewing tobacco and cigars sold in Prince Edward Island are required to be specifically marked with the Federal tobacco stamp.

These stamps indicate that all required taxes have been paid.

Tobacco products that have the tobacco stamp, as required, are legal tobacco in Prince Edward Island. 

What is contraband or illegal tobacco?

All tobacco except for pipe tobacco, snuff, chewing tobacco and cigars sold in Prince Edward Island is required to be specifically marked with a Nova Scotia tobacco stamp. The Nova Scotia tobacco stamp is a modified federal tobacco excise stamp with a background colour of Pantone purple and the letters “NS” printed on the stamp. Pipe tobacco, snuff, chewing tobacco and cigars sold in Prince Edward Island are required to be specifically marked with the Federal tobacco stamp.

These stamps indicate that all required taxes have been paid.

Tobacco products that do not have the tobacco stamp as required are considered contraband or illegal tobacco in Prince Edward Island. 

Can I be fined for possession of contraband or illegal tobacco in excess of the limits?

Yes, information on penalties and fines can be found in the section Tobacco Tax Compliance.

Can I be fined for possession of legal tobacco in excess of the limits?

Yes, information on penalties and fines can be found in the section Tobacco Tax Compliance.

 

Disclaimer: This page is prepared for information purposes only, and should not be considered a substitute for the applicable statutes. Should there be any conflict between the contents of this page and the statutes, the statutes shall prevail.
Published date: 
April 5, 2017
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General Inquiries

Taxation and Property Records
1st Floor Shaw South, 95 Rochford Street
PO Box 2000
Phone: (902) 368-4070
Fax: (902) 368-6164

taxandland@gov.pe.ca