Ottawa is contemplating implementing an annual fee on tobacco companies to cover regulatory expenses.

August 3, 2024 TruthUSA

The federal government is considering regulations for the tobacco industry, with plans to have tobacco manufacturers cover the associated costs.

Changes were recently introduced in November 2023 through Bill C-59 to amend the Tobacco and Vaping Products Act. These changes allow the minister to establish regulations requiring manufacturers to pay fees or charges to the government to cover the expenses of regulating the production, sale, labeling, and promotion of tobacco and vaping products.

Currently, the costs amount to $66.2 million, funded by taxpayers. Various organizations, including Health Canada, Public Health Agency of Canada, Public Safety Canada, RCMP, Canada Border Services Agency, the Canada Revenue Agency, and Indigenous Services Canada, contribute to these costs.

The proposed charge will be “a variable annual charge based on a manufacturer’s tobacco product domestic market share,” calculated based on the previous fiscal year.

It’s important to note that fees or charges for vaping product manufacturers are not currently included.

The government presents this document as a basis for discussion, inviting feedback which will be considered in finalizing the tobacco cost recovery framework regulations and publishing a summary.

Consultations on the cost recovery plan are scheduled to take place from Aug. 1 to Oct. 10, according to the document.

Smoking is highlighted in the document as the leading preventable cause of premature death in Canada, with an estimated 46,000 individuals succumbing to tobacco-related illnesses annually.

Despite a decline in tobacco use, 11.9%, or 3.8 million individuals in the country are still smokers.

A survey conducted by Statistics Canada in 2022 revealed that 12% of Canadians over 25 years old reported smoking, compared to 4% in the 15-19 age group. The survey also indicates a higher prevalence of smoking among men (13%) compared to women (9%).

When considering the younger demographic, 59% of students in Grades 7–12 believe it would be fairly easy or very easy to obtain a cigarette if desired. Moreover, 15% of students in these grades admitted to trying smoking.

Data indicates that younger Canadians are more inclined towards trying vaping over traditional cigarettes. 30% of individuals aged 15-19 reported trying vaping, with one in seven revealing recent vaping activity.

However, among those aged 20-24, 47.5% have experimented with vaping, compared to 14.7% of individuals over 25 years old. One in five Canadians aged 20-24 acknowledged vaping within the past month.

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