Tobacco tax increase – Government of Nunavut

15 March 2017

Tobacco tax increase

IQALUIT, Nunavut (March 15, 2017) – Effective March 15, 2017, the Government of Nunavut (GN) is increasing the tax rates on the following tobacco products:

• cigarettes to $0.30 per cigarette, from $0.25
• smoked tobacco to $0.40 per gram, from $0.20
• non-smoked tobacco to $0.30 per gram, from $0.20

“Evidence suggests that increasing the cost of tobacco is an effective means to reduce tobacco consumption rates, which ultimately leads to improved health outcomes,” said Minister of Finance Keith Peterson. “Our data shows that the last time tobacco tax rates were raised in 2012, fewer cigarettes were purchased as a result. Tax rates and other prevention measures must continue to be reviewed and modified in order to reduce the harms associated with tobacco use.”

The GN expects to generate over $4 million per year in revenues as a result of this increase, on top of the $17 million it has already budgeted to generate through tobacco taxes in 2017-2018. Tax revenues are used to support a range of public services across Nunavut.

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Media Contact:

Denise Grandmaison
Manager, Communications
Department of Finance
867-975-6818
dgrandmaison@gov.nu.ca

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