Thank you, Mr. Chair. Mr. Chair, We are here today to review Bill 15: An Act to Amend the Tobacco Tax Act.Legislation is required to amend the Tobacco Tax Act to allow changes to the tobacco tax collection system, to establish a tax duty stamp to be placed on tobacco products sold in the NWT, and to eliminate the commission paid to tobacco tax collectors. The establishment of a tobacco tax duty stamp will require that all tobacco products sold in the NWT be marked, stamped, sealed or labeled with a jurisdictional tax stamp. The introduction of a jurisdictional tobacco stamp will mitigate risks related to smuggling.

These changes will also simplify the administration and auditing of the tobacco tax collection process by reducing the number of transactions, streamlining the reporting, removing the need for inventory reconciliations, and ensuring that all inventories of tobacco products held by wholesalers are tax paid. Thank you, Mr. Chair.