Tobacco retailers stall province

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The International Retailers Association of British Columbia has dealt another blow to the province's planned Tobacco Marking Program, resulting in an indefinite postpone-ment of the program's effective date.

The association has been fighting the marking program since April because it is considered racist. The province intended to mark all tobacco packages with the province's unique marks except those sold tax-exempt to status Indians.

The retailers believed the plan would further segregate Indians and non-Indians. It would also create an inventory nightmare for those retailers who would have to carry two different sets of each kind of tobacco product.

The program was to begin May 1, but the retailers' association persuaded Elizabeth Cull, Minister of Finance and Corporate Relations, to place a three-month moratorium on the program. August 2 then became the effective date.

Arthur Manuel, a negotiator for the association, said the retailers met with Greg Reimer of the Consumer Taxation Branch July 11.

The retailers encouraged Reimer to view reserves as legal and geographically distinct marketplaces with unique legal status. To regard reserves as such then leads to the recognition that special business problems arise for reserve retailers in regard to provincial taxation.

Negotiations were not limited to jurisdiction. Also discussed was the exempt-tobacco quota program, staff safety and security, and inventory.

The association believes this is the first time the Consumer Taxation Branch is considering its impact on the reserves of B.C. over taxing tobacco products, said Manuel. Education is the key to further successful negotiations.

First Nations businesses will no longer be silent while the Consumer Taxation Branch imposes taxation policies designed to protect provincial tax revenue, Manuel said. It's important the province take into consideration the economic interests of First Nations when making taxation policy.