NEW LIMITS ON TAX-FREE TOBACCO TO TAKE EFFECT

The new lower limits on tax-free tobacco sold on reserve will take effect on July 1, 2010.

As announced in the March, 2010 Budget, the amount of tobacco that First Nations individuals may purchase tax-free on reserve is being reduced from three cartons to one carton per week with provisions to purchase additional tobacco for cultural and ceremonial purposes.

The limit amounts to a weekly tax-free consumption rate of 200 cigarettes, or an equivalent amount of other tobacco products, representing slightly more than a package of 25 cigarettes per day.

Packages of cigarettes and fine cut tobacco that are purchased tax-free on-reserve by Status Indians will have peach-coloured tear-tape markings, known by the industry as black stock tobacco, to distinguish them from the beige-coloured tear-tapes used on tobacco products that are sold with tax included.

Black stock tobacco may not be sold to individuals who are ineligible for a tax exemption.

"These changes are part of the government's overall tobacco strategy to help reduce tobacco usage in Saskatchewan," Finance Minister Rod Gantefoer said.

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For more information, contact:

Randy Burton
Finance
Regina
Phone: 306-787-6578
Email: randy.burton@sk.gov.ca
Cell: 306-530-2049