Cigar tax in Canada ... my solution

[jabba]

By my guestimates, roughly 5-6 million premium hand mand cigars are sold in Canada every year generating anywhere from 50-75 million dollars in tax revenue for the Canadian government, both provincial and federal. Total tobacco tax revenue in Ontario in 2004 was close to 1.5 billion dollars. Considering that Ontario is roughly one third of Canada's population I would guess that total revenue collected for tobacco taxes in Canada was in the neighbourhood of 4-5 billion dollars, maybe more. Therefore by my math, taxes from premium hand made cigars only account for 1-1.5% of total taxes collected from tobacco.

Now for the solution...

CUT TAXES ON PREMIUM 100% HAND MADE CIGARS TO ZERO!

Now for my reasoning...

-This move will spark tourism. Imagine if our brothers to the south can drive up to Canada to buy and smoke their forbidden fruit (Cuban cigars) for $5-10 per. Canada will become the Spain of North America and it will give cigar aficionados an even greater reason to visit the Rockies, fish at our lakes, frequent our casinos and shop shop shop. Cigar aficionados are generally wealther individuals that like fine wines, restarants, spirits and living. Imagine how much PST and GST revenue all this shopping will generate(think of places like Niagara on the Lake, Montreal, Lake Louise). My guess is more than the 50-75 million dollar tax cut.

-Cigar consumption is very time consuming and cutting the tax won't increase consumption. The average premium hand rolled cigar takes anywhere from 45-90 minutes to smoke. Given that fact that people can't smoke them at work because of indoor smoking laws, can't smoke them in shops or malls, can't smoke them in 99% of our restaurants, they will remain a special luxury item and will never be treated as their evil twin the cigarette. Even when I make the time I don't smoke more then a few cigars a week and smoking a cigar or two a week does not hurt our health care system. It may even improve it because cigar smokers are generally a more relaxed and stressfree bunch.

-Cigar events will be attracted to Canada. Cigar conventions, dinners, gala's etc will further bring dollars to the Canadian economy. Raising the cigarette tax by 2% will easily make up for this tax loss from premium hand rolled cigars and it's very well proven that cigarette smokers are the ones raising our health care costs.

Please comment with your opinion whether you are in favour or opposed to my idea, I would like to hear different view points and rebuttals.

references:

http://www.health.gov.on.ca/english.../tobacco_revenue.html

http://www.cbc.ca/consumers/market/files/scams/cigars/


posted from http://cigarjournal.blogspot.com/

 

[Ekans]

-This move will spark tourism. Imagine if our brothers to the south can drive up to Canada to buy and smoke their forbidden fruit (Cuban cigars) for $5-10 per.

Hmmmm....isn't it forbidden for americans to smoke ISOMs outside of US also??

 

[Sunward]

I remember hearing Americans taking amongst themselves "save your receipts" we will claim that at the border. I know that any American that spends $$ here in Canada, and save the receipt, will be refunded the amount at the duty free shop. Any cigar vendor, is required by law, to charge 7% tax (yes, thats tax on top of tax), and to provide a receipt. I agree with cutting the cigar tax (which is 45%). What i see happening, is alot of cigars "aging" as they are not moving at this point, due to the tax. maybe they can catch the odd person, buying as a gift near Christmas,,,, otherwise, bend over if you want to purchase. :angry: