Alberta Government Closing Tax Loophole for Online Cigarette Sales

The Alberta government is closing a tax loophole that allows cigarette purchasers to avoid paying Alberta provincial sales tax by ordering cigarettes over the Internet. The loophole exists because Alberta does not have an agreement with the Canada Customs and Revenue Agency to collect provincial tax on goods that enter the country. By ordering cigarettes from international companies, purchasers avoid having to pay the provincial portion of the tax and can save about $20 per carton. Alberta Revenue Minister, Greg Melchin, stated that once the loophole has been closed, consumers will be limited to one carton duty free, with duty and provincial taxes applicable on any additional amounts. For more information, visit: http://shorl.com/gotidejodury Summary by: Nick Wong