Information Notice, June 2002
- On June 17, 2002, the Minister of Finance proposed tobacco tax rate increases and changes to the structure of tobacco taxation. Specifically, tobacco would be exempt from retail sales tax (RST) and there would be an equivalent increase in rates under the Tobacco Tax Act. This means that tobacco products sold to consumers in Ontario will no longer be subject to RST.
- This notice explains the RST changes.
Retail Sales Tax - Exemption
Effective June 18, 2002, if you sell tobacco products in Ontario, you will no longer be required to charge RST on your retail sales of tobacco products, including cigarettes, cigars, cut tobacco, chewing and raw leaf tobacco, and snuff.
Any RST charged on the sale of these products prior to June 18, 2002 must be remitted on your next RST return.
RST continues to apply to the sale of tobacco-related items, such as pipes, cigarette holders or clips, rolling papers, and filters.
For More Information
For more information regarding RST, please contact the nearest Ontario Ministry of Revenue Tax Office listed in the blue pages of your telephone directory, or visit our website at ontario.ca/revenue. For more information regarding Tobacco Tax, please contact the ministry by calling 1 866 ONT-TAXS (1 866 668-8297).
© Queen's Printer for Ontario, 2002
ISBN 0-7794-3267-3
