Exemption from Retail Sales Tax
Are tobacco products exempt from Retail Sales Tax?
In the 2002 Ontario Budget, the Government of Ontario proposed changes to the taxation of tobacco products: exempting tobacco products from Retail Sales Tax (RST), and increasing tobacco tax rates.
As of June 18, 2002, vendors are not required to charge RST on their retail sales of tobacco products including cigarettes, cigars, cut tobacco, snuff, chewing tobacco and raw leaf tobacco. However, vendors are still required to remit any RST collected prior to June 18, 2002 with their next RST return.
