Hon. J. J. McCann (Minister of National Revenue):
The hon. member was good enough to give me advance notice of his question, and in reply I would like to say that I am aware of the press reports stating that cigarettes of
United States manufacture are being sold in some Canadian chain stores at prices lower than domestic cigarettes. The department is now looking into this matter and is carrying on investigations to establish whether the proper duties and taxes have been paid.
The customs duty on cigarettes imported from the United States is $2 per pound and 15 per cent ad valorem plus $2 per thousand cigarettes.
The sales tax of 10 per cent is payable on the duty paid value. There is also an excise tax of two cents per unit of 5 or any fraction thereof. Dumping duty would not apply in the case of these imports for the reason that under the provisions of subsection 2 (i) of section 6 of the Customs Tariff goods which, like cigarettes, are of a class subject to excise duties under the Excise Act, are exempt from special or dumping duty.
Subtopic: REPORTED SALES OF UNITED STATES BRANDS