Tobacco Tax Rates

This section provides information on current and historical tobacco tax rates in the Province of Prince Edward Island.

What rate of Tobacco Tax is paid by the consumer?

As of June 20, 2015, every consumer of tobacco purchased at a retail sale in the province pays to the government, at the time of purchase, a tax at the following rates:

  • 25 cents per cigarette purchased
  • 25 cents per tobacco stick purchased
  • 71.6 per cent of the retail price of each cigar purchased
  • 21.5 cents on every gram, or part thereof, of tobacco purchased other than cigarettes, cigars and tobacco sticks

What are the historical Tobacco Tax rates in the Province of Prince Edward Island?

The Health Tax Act came into force on April 10, 1941 and a tax rate of 10 per cent was charged on the retail price of all tobacco products sold on Prince Edward Island. Regulations under the Act were first proclaimed on January 29, 1942.

On May 1, 1957, wholesalers became collectors of tobacco tax. On March 15, 2008, the tobacco-related legislation within the Health Tax Act was replaced by the Tobacco Tax Act and Tobacco Tax Act Regulations.

The resource Historical Rates of Tobacco Tax provides tax rates back to 1941.

How are changes made to the rate of Tobacco Tax?

A change in the rate of Tobacco Tax would normally be announced in the Budget Speech presented to the Legislative Assembly by the Minister of Finance. Any such announcement would initiate the tabling of legislative amendments in support of the tax rate change.

How are consumers, manufacturers and vendors informed of Tobacco Tax rate changes?

A formal Tobacco Tax Notice – Rate Change is produced and posted on our website whenever there is important information regarding rates to be communicated to Tobacco Tax manufacturers, wholesalers and retailers. If applicable, notices are also forwarded by email and/or mail to respective tobacco tax manufacturers, wholesalers, and retailers.

 

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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Taxation and Property Records
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PO Box 2000
Phone: (902) 368-4070
Fax: (902) 368-6164

taxandland@gov.pe.ca