Alberta to Hike Gas, Tobacco Taxes

Local convenience stores say the increase will drive customers away.

October 29, 2015

EDMONTON, Alberta – For the second time in the calendar year, the Alberta government is increasing gas and tobacco taxes—two key products for Alberta convenience store owners.

"The tax burden on our stores and on our customers is becoming overwhelming," said Andrew Klukas, president of the Western Convenience Stores Association (WCSA), in a press release. "In this economy, owners are fighting just to keep their stores open. The last thing we needed was another tax increase."

Tobacco and gas taxes have gone up twice in the last year. The increased price of gas impacts the costs of all goods and services. Credit card fees increase for everyone when customers use their cards to pay for gas, and store owners will have to deal with more drive-offs as people try to avoid paying for gas.
And it should come as no surprise that the illegal tobacco trade continues to thrive in Alberta.

"Alberta's illegal tobacco rate is 9.8% and contraband tobacco is available across the province," said Klukas. "These tax increases are quickly driving tobacco customers underground and to the black market. The Alberta government is giving the advantage to criminals, not to small business."

While new taxes may provide the government with short-term revenue, they will place and incredible strain on small businesses and impact every Albertan's purchasing power. "With regard to tobacco, we have asked the government to work with the Alberta Gaming and Liquor Commission to give them the resources and mandate to make fighting contraband tobacco a priority in Alberta," said Klukas. "With this increase in taxes we are confident that more illegal sellers will be on the ground in Alberta."

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