British Columbia adds sales tax on cigarettes and other tobacco products – BC

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British Columbia now collects PST on tobacco products, including cigars, chewing tobacco, raw tobacco and cigarette packs.

A $15.99 pack of cigarettes with tobacco taxes will now cost 7% more than before, or $1.12 more per pack. The tax started on July 1.

“We are aligning with other provinces to ensure we collect PST on tobacco products,” said Selina Robinson, BC Finance Minister.

The province exempts e-cigarettes and vape juices in an effort to encourage smokers to quit.

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Canada Day also marks a shift to PST collection on online marketplaces like Amazon and Ebay.

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The 7% tax must be submitted by businesses with revenues over $10,000 per year, shifting the tax burden from individual sellers to the retailer.

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The province expects $100 million next year in provincial revenue.

“It ensures that we have a fair and level playing field. if you have bricks and mortar, you pay taxes, and so should those online marketplaces,” Robinson said.

Commissions for food delivery apps or Google Priority Ads will now also have PST, but it’s a change the Retail Council of Canada is concerned about.

“It’s the only jurisdiction that has this and our prices will be a bit higher than elsewhere,” said Greg Wilson, director of government relations for the Retail Council of Canada.

“It makes small businesses less competitive.”


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