Thank you, Mr. Speaker. Mr. Speaker, I wish to report to the Assembly that the Standing Committee on Government Operations has reviewed Bill 15, An Act to Amend the Tobacco Tax Act.
Mr. Speaker, this bill amends the Tobacco Tax Act to permit the introduction of an excise-paid tax stamp to facilitate verification that the proper taxes have been paid on tobacco sold in the Northwest Territories, thereby reducing opportunities for the sale of contraband tobacco. The bill also amends the process for tax collection to the "purchase method," requiring the remittance of taxes owing by wholesalers to the government of the Northwest Territories at the time that tobacco is purchased from manufacturers. Finally, the bill eliminates the need for retail dealers to act as "deputy collectors" under the act and eliminates commissions paid to wholesale dealers.
Mr. Speaker, the Standing Committee on Government Operations held a public hearing on this bill in Yellowknife on April 6, 2017. At that hearing, the committee heard from Mr. Roger Walker who, as the owner and general manager of Territorial Tobacco Products, is the only tobacco wholesaler resident in the Northwest Territories. Mr. Walker raised some general concerns about tobacco tax collection that are outside of the scope of the bill. The committee understands that the government's Department of Finance has taken Mr. Walker's concerns into consideration and responded accordingly. The committee would like to thank Mr. Walker for his input.
A public clause-by-clause review of the bill took place earlier this afternoon. With that, Mr. Speaker, the committee wishes to report that Bill 15, An Act to Amend the Tobacco Tax Act, is now ready for consideration in Committee of the Whole. Thank you, Mr. Speaker.