Tobacco Tax to increase Feb. 127 January 2017
FREDERICTON (GNB) – The provincial government reminds New Brunswickers that the tax rate on tobacco will increase by 3.26 cents on Feb. 1.
“Taxes on tobacco are imposed to discourage smoking and to help pay for the additional costs smoking imposes on our health system,” said Finance Minister Cathy Rogers. “The revenue generated by this increase will contribute to investments in the priority areas of health care, education and job creation.”
As announced last year as part of the 2016-17 Budget, the tax rate applied to tobacco products in New Brunswick is being increased by 6.52 cents per cigarette over two years.
On Feb. 3, 2016, an initial increase of 3.26 cents was applied, bringing the tax rate from 19 cents to 22.26 cents. As the second step, this rate will increase by an additional 3.26 cents to 25.52 cents, effective Feb. 1.
It is estimated that this increase will generate about $25 million in additional revenue once fully implemented.