Canada tobacco tax bites again

Gavin Lipsith

1-Dec-2005

The Frontier Duty Free Association (FDFA) has allocated C$10,000 ($8,400) to fund lobbying during the year ahead, including taking action on the long-standing export tax on domestically-produced tobacco

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The Canadian border store operators' association will also use the fund to finance lobbying against proposed legislation requiring everyone crossing the US border to carry a passport, although outgoing FDFA

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(11-Jul-2002) - Canadian border operators have told DFNI that the 5% drop in dollar sales of domestically produced tobacco registered at the Canadian border in 2001 fails to reveal the true extent of the deficit.
(27-Jun-2002) - The Canadian government is to increase taxes on domestically-produced tobacco in the country?s duty-free outlets yet again.
(15-Nov-2002) - CANADA. As the Canadian duty-free trade met in Vancouver this week at the 18th Convention of the Frontier Duty Free Association (FDFA), the Canadian government?s controversial tobacco policy continued to provoke lively debate. With tobacco sales at the US/Canada border down an estimated 34% since the introduction of an export tax on Canadian-manufactured tobacco, the FDFA is discussing whether to push for the indexing of duty-free tobacco, which would ensure that further tax increases would hit travel-retail less hard than the domestic market.
(1-Nov-2004) - Canadian border store operators have asked the Canada Border Services Agency (CBSA) to split tobacco sales figures to provide a more accurate reflection of the value of the category to retailers
(1-Aug-2004) - Tobacco sales at Canada's border stores continued to decline faster than the rate of decline in total sales over the first five months of 2004, reflecting the continuing troubles caused by the government's export tax on domestically-produced tobacco products.