Press Release - March 31st, 2009
Tobacco Taxes, Liquor Markups to Increase
YELLOWKNIFE (March 31, 2009) - Increases to Northwest Territories tobacco taxes and liquor markups will take effect Wednesday April 1, 2009. Minister of Finance J. Michael Miltenberger announced the increases in his February Budget Address.
Based on price surveys conducted in late February, the tax on cigarettes will increase by $11.60 per carton of cigarettes and by 5.6 cents per gram of loose tobacco as required under the NWT Tobacco Tax Act.
This figure differs from the amount originally estimated in the Budget because the tobacco tax is set as a percentage of the retail price of cigarettes, which is now higher than originally estimated.
The NWT Liquor Commission will also increase the markup on liquor products by 10 per cent. The higher markups will raise retail liquor prices by approximately 7 per cent for spirits, 5 per cent for beer, and 5 per cent for wine.
"These two measures will raise about $4.3 million dollars a year," Minister Miltenberger said. "The revenue consultations we held over the summer and fall of 2008 showed that although people do not like tax increases, higher taxes on tobacco and alcohol were supported more than other options."
"Alcohol and tobacco do significant harm to the health of NWT residents, and we hope that these measures will encourage people to reconsider and reduce their consumption," the Minister said.
For more information contact:
John Monroe
Director of Fiscal Policy
Department of Finance
Government of the Northwest Territories
Tel: (867) 920-6436
E-mail: john_monroe@gov.nt.ca
