Holy Tax and Duty!!

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  • thorgrimnr
    Member
    • Jun 2007
    • 27

    Holy Tax and Duty!!

    I buy my snus from the Northerner and about 1/5th of the time customs stops my snus. Get this, when all is said and done I'm paying about $21.00 for a single can of snus!! This last order totalled $105.00!!
  • thorgrimnr
    Member
    • Jun 2007
    • 27

    #2
    I should add how it all breaks down too.

    The original cost of just the snus in Canadian dollars was a value of $24.62, or $4.92 per can

    The Government felt it's value for duty was $100.00 @ 9.5% this came to $23.48.

    Then there is the GST @ $7.41

    The the beloved PST @ $44.75

    Let's not forget the handling fee of $5.00

    In total $80.64 additional taxes, duties and handling fees. Remember the cost of the actual snus...$24.62

    I can't wait to start making my own!

    Comment

    • chainsnuser
      Senior Member
      • Jan 2007
      • 1388

      #3
      That sounds sad, thorgrimnr!

      With such taxes and customs fees, I'd really try growing my own tobacco, no matter how it will taste - and the ruling party, responsible for such ridiculous taxes and fees, would never get my vote.

      I wonder what the Canadian government wants to achieve. Do they want people to continue to smoke? Are there any cigarette manufacturing companies in Canada, that need to be protected? Sick politics, anyway!

      Cheers!

      Comment

      • Zero
        Member
        • May 2006
        • 1522

        #4
        Originally posted by thorgrimnr
        I should add how it all breaks down too.

        The original cost of just the snus in Canadian dollars was a value of $24.62, or $4.92 per can

        The Government felt it's value for duty was $100.00 @ 9.5% this came to $23.48.

        Then there is the GST @ $7.41

        The the beloved PST @ $44.75

        Let's not forget the handling fee of $5.00

        In total $80.64 additional taxes, duties and handling fees. Remember the cost of the actual snus...$24.62

        I can't wait to start making my own!
        If they've charged you based on an incorrect "value for duty" then you can claim it back - as long as you have the sales receipt which shows exactly how much it cost then they can't rightly tax you for more than that - at least not GST and PST. There is a tobacco tax but it should be charged by weight at the tarrif rate for moist tobacco. Look into it - you can probably get some of that back. :idea:

        Comment

        • The Cook
          Member
          • Aug 2007
          • 166

          #5
          Tobacco, Duties and tax

          Makes for grim reading, eh.

          I called the Canadian Border Services Agency (formerly Customs Canada, new name decidedly post-911 panic) and asked for a breakdown of import duties and taxes on tobacco.

          Here we go:

          Duty - 5% (of what, I don't know)
          Excise - $55.90/Kg
          GST - 6% (of actual purchase price, I would hope!)
          Province of Ontario tobacco tax - $117.20/Kg

          Let's say you bought a roll of 10 tins of portions (weighs 240gr, discounting the container weight), costing $31 CDN, the CBSA will charge you as follows:

          Duty - $1.55 (I am assuming this tax is on the purchase price in $CDN)
          Excise - $23.30
          GST - $1.86 (same as above)
          Ontario Tobacco Tax = $48.84

          for a total of $75.55
          plus the snus $31.00
          =====
          $106.55 CDN for 10 cans

          Comment

          • Zero
            Member
            • May 2006
            • 1522

            #6
            ^ Ah, but what kind of tobacco? There are different rates for different types. Moist tobacco tends to be lower because much of the weight is water. You could buy much more dry tobacco than snus by weight, otherwise. Shisha falls under those rates as well, I think. Best to check for sure if the guy wasn't clear about it.

            Comment

            • The Cook
              Member
              • Aug 2007
              • 166

              #7
              Zero, I'll call the CBSA on Tuesday (remember Labour Day Monday)? and ask them about different duties and excises for different types of tobacco.

              I hope you're right about moist tobaccos...

              ps what is Shisha?

              Comment

              • Zero
                Member
                • May 2006
                • 1522

                #8
                clicky - shisha 8)

                Comment

                • The Cook
                  Member
                  • Aug 2007
                  • 166

                  #9
                  Same question - what is shisha?

                  Comment

                  • chainsnuser
                    Senior Member
                    • Jan 2007
                    • 1388

                    #10
                    Another name for a hookah :wink: .

                    Waterpipes are getting more and more popular, partly because of the false assumption, that they are less risky than other forms of tobacco smoking, partly because of the taste and the relaxing experience.

                    Shisha-tobacco is quite moist, just like snus.

                    BTW, thanks to the snus-ban, and thanks to the stupidity of modern german legislation, which tries to get rid of snus, by defining a maximum allowed moisture of tobacco-products, shisha-tobacco can only be sold in Germany as dry tobacco. :shock:

                    Cheers!

                    Comment

                    • The Cook
                      Member
                      • Aug 2007
                      • 166

                      #11
                      thorgrimnr, I think you got taken by the CBSA. According to my calculations (see post above), duties, excise and taxes on *10* cans of snus are $75.55.

                      If you paid $80.00 for 5 tins, I would appeal it and hopefully get back about $40.

                      Comment

                      • The Cook
                        Member
                        • Aug 2007
                        • 166

                        #12
                        Taxes in Canada

                        Well, I talked to the Canadian Border Services agency (formerly Customs) again and I got a completely different story about what the 10 cans of snus would cost to import. The roll is worth $31 CDN

                        Apparently there is *NO* Duty or Excise Taxes on snus. That leaves GST @7% equaling $2.10, and there is an Ontario Tobacco tax of $28. So the roll costs 30$ in taxes

                        Total - $61 for ten tins - about $6 a tin. This is a lot better scenario than my previous postings showed.

                        However, I 'm sure that when I next call CBSA, I"ll get a different story :wink:

                        Comment

                        • The Cook
                          Member
                          • Aug 2007
                          • 166

                          #13
                          Zero, ever the researcher, you're right that snus is taxed for the most part differently than other forms of tobacco. We see 0 Duty or Excise on the federal level, and Ontario's taxes are $.1235 per gram. A lot better than my first report!

                          Comment

                          • Zero
                            Member
                            • May 2006
                            • 1522

                            #14
                            Yeah, that sounds better. Anyone getting charged different rates by mistake can always reclaim the difference from Canada Customs by filing a claim.

                            Comment

                            • The Cook
                              Member
                              • Aug 2007
                              • 166

                              #15
                              Well, I talked to the Canadian Border Services agency (formerly Canada Customs) yet again (Sept 5) and I got a completely different story again about what the 10 cans of snus would cost to import. The roll is worth $31 CDN

                              Now they say the following:

                              Duty - $1.55
                              Excise - $13.42
                              GST - $2.70
                              Ontario tobacco tax - $28
                              =====
                              $45.67

                              This means a tin costs $3.00 purchase price plus $4.60 in taxes, for a total of $7.60 a can.

                              I'm sure that if I call them again, I'll get a different amount.

                              The besf thing to do (other than ordering small amounts) would be to appeal the tax and see if you can get a reduction

                              I'd say case closed here.

                              ps - Zero - what are you going to do when you get back to Canada (if ever!)

                              Comment

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