Prince Edward Island Increases Tobacco Tax Rates

In its 2020 Budget announcement, the Government of Prince Edward Island announced increases to the tax rates on the following tobacco products:

• cigarettes increase to $0.2752 from $0.25 per cigarette;
• tobacco sticks increase to $0.2752 from $0.25 per stick;
• cigars increase to 75% of the retail price from 71.60% of the retail price; and
• all tobacco products, other than cigarettes, tobacco sticks, and cigars, increase to $0.2752 from $0.2150 per gram.

These increases have now received Royal Assent and became effective July 15, 2020. Tobacco retailers are reminded that they must take an inventory of tobacco products on hand at 12:01 a.m. on July 15, 2020, and remit the additional tax owing on these products based on these tax rate increases.  Additional information is available in the following publications:

• Tobacco Tax Notice: 132 – Tobacco Tax Rate Changes;
• Tobacco Tax Notice: 133 – Tobacco Retailers - Tobacco Tax on Tobacco Inventory On-Hand;
• Tobacco Tax Notice: 134 - Tobacco Wholesalers - Tobacco Tax on Tobacco Inventory On-Hand; and
• Tobacco Tax Notice: 135 - Tobacco Tax Rate Changes.