Optimal Taxation, the Underground Economy and Government Policy: Recommendations for Tobacco, Vaping

20.500.12592/6z5mzz

Optimal Taxation, the Underground Economy and Government Policy: Recommendations for Tobacco, Vaping

14 Feb 2023

Specifically, the paper took advantage of the temporary shutdown of First Nations tobacco manufacturing and sales operations in Ontario and Quebec during the peak of the first wave of COVID-19 (May 2020 to June 2020) to evaluate the extent of the illegal cigarette market in Canada. [...] The study examined cigarette sales in a sample of convenience stores and found the legal sales of cigarettes in the month of June increased by 44.9% in New Brunswick, 47% in Prince Edward Island and 44.3% in Newfoundland and Labrador compared to sales in June 2019. [...] Specifically, it uses the example of a 30-millilitre bottle of vaping liquid, which would then carry an excise duty of $7.00 due to the $5.00 tax for the first 10 millilitres and $2.00 for the remaining 20 millilitres.18 The budget document also projects revenues of $654 million over the next five years. [...] The revenues from excise duties on cannabis would be collected by the federal government and shared with the provinces, with 75% going to provincial and territorial governments and the remaining 25% retained by the federal government. [...] A complete list of the AGCO’s requirements for private operators with respect to standards for internet gaming is available on its website.31 Further, regulated markets enable the monitoring of problem behaviour and delivery of messages that point out the dangers of problem gaming and indicate the availability of relevant government resources, which is important from a harm-reduction perspective.

Authors

Mark Agnew

Pages
32
Published in
Canada

Tables

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