The latest increase in tobacco taxes puts B.C. cigarette prices among the highest in Canada, prompting concern about an increase in smuggled smokes.

The B.C. government budget adds 56 cents in tax to the price of a pack of 20 cigarettes, effective April 1. That brings the to $5.50 per pack, with federal excise tax and provincial sales tax on top of that.

ItB次元官网网址檚 the second increase this year. B.C.B次元官网网址檚 tobacco tax went up 16 cents per pack on Jan. 1, and one of CanadaB次元官网网址檚 largest tobacco companies warns the effect may not be what the provincial government expects.

A 50-cent tax increase in Alberta last year led to a drop in tobacco tax revenue, said Eric Gagnon, head of corporate and regulatory affairs for Imperial Tobacco Canada.

B次元官网网址淓xcessive taxation is the primary factor that drives consumers to the illegal market,B次元官网网址� Gagnon said. B次元官网网址淭he federal government recognizes this when it comes to marijuana, with federal Finance Minister Bill Morneau suggesting that taxes should be kept low to allow competition with the illicit market.B次元官网网址�

B.C. continues to allow tax-exempt tobacco sales to aboriginal people on reserves, and in duty free shops for international travellers. Diplomatic and consular staff are also eligible for tax-free tobacco purchases.