Regulation - LGIC
Raw Leaf Tobacco Regulation under the Tobacco Tax Act
Regulation Number(s):
N/A
Instrument Type:
Regulation - LGIC
Bill or Act:
Tobacco Tax Act
Summary of Proposal:
On June 1, 2011, the Tobacco Tax Act was amended to provide for the regulation of raw leaf tobacco as of Oct. 1, 2012 (see link below). As noted in the 2012 Budget, additional details of the program for the various participants, as applicable, will be made by regulation including:
The transitional period that may apply for particular participants.
Criteria that applicants must satisfy to get a registration certificate.
- For example, may include a requirement that a person must not have been convicted of certain offences, such as an offence related to tobacco, within a specified timeframe.
Additional circumstances in which the Minister may suspend or cancel a registration certificate.
- For example, ceasing to meet the criteria that must have been satisfied to obtain the certificate.
The information that must be provided to the Minister on a regular basis.
- Participants would be required to provide information about their raw leaf tobacco activities (e.g., inventory and other adjustments based on ownership) by filing regular reports.
- Certain participants may have reduced reporting requirements, such as producers that grow tobacco for uses unrelated to the manufacture of cigarettes or other tobacco products.
Additional information to be provided to the Minister.
- For example, participants may also be required to give notice of certain events on a case-by-case basis, such as notice of intention to destroy raw leaf tobacco; producers may be required to submit additional information specific to their planned and actual growing activity
Exemptions from prohibitions on carrying out regulated activities for certain persons or in certain circumstances.
- For example, an exemption for persons who do not grow more than a certain amount of raw leaf tobacco.
A regulation will also set out information to be kept with respect to the transportation of tobacco, as well as information to be given in a notice of intent to seize raw leaf tobacco.
Other Key Program Elements:
The Act authorizes the Minister to impose reasonable conditions and restrictions on a registration certificate. In addition to establishing the effective period of a registration certificate (for example, an effective period that expires at the end of the calendar year), examples may include restricting the amount of tobacco that a person may produce (e.g., to the amount for which the producer has valid contracts), and the acreage on which the tobacco may be grown to the acreage declared by the producer.
Transition:
As a transitional measure, under the Act, persons who hold and are in compliance with certain valid licences or registrations issued by the Ontario Flue-Cured Tobacco Growers' Marketing Board will be regarded as having certain registration certificates under the Act.
For other participants, the regulation may incorporate a grace period to provide a smooth transition to the new regime.
Once the regime is phased-in, all participants would be required to hold the appropriate registration certificate before engaging in regulated activities.
Note:
Producers that accepted payments under the federal government's Tobacco Adjustment Assistance Program or Tobacco Transition Program may be required under the terms of those programs to repay those funds if they obtain any right to produce or market flue-cured tobacco, directly or indirectly.
The transitional period that may apply for particular participants.
Criteria that applicants must satisfy to get a registration certificate.
- For example, may include a requirement that a person must not have been convicted of certain offences, such as an offence related to tobacco, within a specified timeframe.
Additional circumstances in which the Minister may suspend or cancel a registration certificate.
- For example, ceasing to meet the criteria that must have been satisfied to obtain the certificate.
The information that must be provided to the Minister on a regular basis.
- Participants would be required to provide information about their raw leaf tobacco activities (e.g., inventory and other adjustments based on ownership) by filing regular reports.
- Certain participants may have reduced reporting requirements, such as producers that grow tobacco for uses unrelated to the manufacture of cigarettes or other tobacco products.
Additional information to be provided to the Minister.
- For example, participants may also be required to give notice of certain events on a case-by-case basis, such as notice of intention to destroy raw leaf tobacco; producers may be required to submit additional information specific to their planned and actual growing activity
Exemptions from prohibitions on carrying out regulated activities for certain persons or in certain circumstances.
- For example, an exemption for persons who do not grow more than a certain amount of raw leaf tobacco.
A regulation will also set out information to be kept with respect to the transportation of tobacco, as well as information to be given in a notice of intent to seize raw leaf tobacco.
Other Key Program Elements:
The Act authorizes the Minister to impose reasonable conditions and restrictions on a registration certificate. In addition to establishing the effective period of a registration certificate (for example, an effective period that expires at the end of the calendar year), examples may include restricting the amount of tobacco that a person may produce (e.g., to the amount for which the producer has valid contracts), and the acreage on which the tobacco may be grown to the acreage declared by the producer.
Transition:
As a transitional measure, under the Act, persons who hold and are in compliance with certain valid licences or registrations issued by the Ontario Flue-Cured Tobacco Growers' Marketing Board will be regarded as having certain registration certificates under the Act.
For other participants, the regulation may incorporate a grace period to provide a smooth transition to the new regime.
Once the regime is phased-in, all participants would be required to hold the appropriate registration certificate before engaging in regulated activities.
Note:
Producers that accepted payments under the federal government's Tobacco Adjustment Assistance Program or Tobacco Transition Program may be required under the terms of those programs to repay those funds if they obtain any right to produce or market flue-cured tobacco, directly or indirectly.
Further Information:
Tobacco Tax Act
Proposal Number:
12-MOF011
Posting Date:
July 13, 2012
Comments Due Date:
August 27, 2012
Contact Address:
Clarence Tong
Ministry of Finance
Corporate and Commodity Taxation Branch
2nd Floor, Frost Building North,
95 Grosvenor Street
Toronto, Ontario
M7A 1Z1
Ministry of Finance
Corporate and Commodity Taxation Branch
2nd Floor, Frost Building North,
95 Grosvenor Street
Toronto, Ontario
M7A 1Z1