Canada To Increase Tobacco Tax, Retail Price Will Be 80% Of All Taxes
- Dec 18, 2017 -

It is reported that a report by the Canadian Department of Health pointed out that Canada will further impose heavy taxes on tobacco classes in order to achieve the long-term goal of reducing the smoking population in Canada to 5%.


According to this internal report, experience since 1999 shows that tobacco taxes are the most effective means of reducing the number of smokers.

In March of this year, then Health Minister Jane Philpott announced that the Trudeau government must reduce the number of smokers to less than 5% by 2035, currently accounting for 14.2% of the total population.

Over the past 20 years, the Canadian government has made efforts to reduce the number of smokers and has introduced a series of measures. Apart from increasing tobacco taxes, it has repeatedly placed public service advertisements and restricted smoking establishments.

Plus tax

At present, the tobacco tax is 68% of the retail price. According to the new report, the new tax rate will increase to 80% of the retail price. By 2036, the number of smokers will be reduced to 6%, which is close to the target set by the government before 2035 .

The existing federal tobacco control strategy will expire in March 2018 and the federal government will measure all possible means and adopt the most effective way to reduce smoking prevalence.

Heavy taxes on tobacco classes can lead to smuggling of contraband goods and rampant crime, so supporting policies must be introduced.

Levy, head of SimSmoke's research, said that legalizing casual marijuana in Canada is unlikely to have any impact on smokers. However, he believes that electronic cigarettes can largely help Canada to achieve the goal of reducing smoking, although this speculation is not enough data to confirm.

The Trudeau government introduced the S-5 Act last year in the Senate to regulate e-cigarette products. This month the House of Representatives will conduct a second review of the bill.

Part of the bill calls for streamlining packaging of tobacco products to reduce the number of youth smokers. But the claim was fiercely opposed by tobacco companies, who see the move as fueling the tobacco smuggling market as consumers will have more difficulty distinguishing between legitimate tobacco products and smuggled species.

However, Levy believes that the recent introduction of tobacco slashing legislation in Australia has made health warnings on packaging more conspicuous, thereby helping to enhance the effectiveness of warnings.