Retail sale of tobacco products for a price that is lower than the total tax applicable

Further to the reduction of the GST and the increase of the excise tax, the retail price below which tobacco products cannot be sold or purchased will be changed effective January 1, 2008.

Consequently, the following minimum retail prices will be in effect on that date: $3.95 for a package of 20 cigarettes; $4.94 for a package of 25 cigarettes; $39.48 for a carton containing 200 cigarettes; and $33.78 for a container of 200 grams of fine-cut tobacco.

Revenu Québec reminds you that the retail sale or purchase of tobacco (or offer to sell tobacco at retail) for a price that is lower than the total tax applicable to the tobacco, that is, the excise duty and the tobacco tax, plus the GST calculated on the excise duty and tobacco tax, is prohibited.

Offences under the Tobacco Tax Act may result in sanctions. In certain cases, offenders are liable not only to a fine but also to the seizure of tobacco products, a term of imprisonment or, where applicable, the suspension of their registration certificate.

Revenu Québec also reminds you that police authorities and agencies that enforce the Tobacco Tax Act (ACCES program) have an email address, contrebande@surete.qc.ca, and a telephone number, 1 800 659-4264, available to the public and businesses to provide, in complete confidentiality, any information pertaining to the smuggling of tobacco.

Article source: http://www.revenuquebec.ca/en/centre-information/actualite/2007/2007-12-19(2).aspx?rss=1