The federal government is considering implementing regulations on the tobacco industry that would require tobacco manufacturers to cover the costs.
In November 2023, Bill C-59 was introduced to amend the Tobacco and Vaping Products Act. These changes include granting the minister the authority to establish regulations that mandate manufacturers to pay fees to the government to cover the expenses associated with regulating the production, sale, labeling, and promotion of tobacco and vaping products.
Currently, the cost amounts to $66.2 million, which is currently funded by taxpayers.
This cost encompasses activities carried out by various organizations such as Health Canada, the Public Health Agency of Canada, Public Safety Canada, RCMP, Canada Border Services Agency, the Canada Revenue Agency, and Indigenous Services Canada.
The proposed charge would be a variable annual fee based on a manufacturer’s market share of tobacco products, calculated from the previous fiscal year.
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At present, fees or charges for manufacturers of vaping products are not included in this plan.
The government has stated that this document presents a preliminary framework open for discussion and feedback.
“Health Canada will take into account this feedback when finalizing the regulations for the tobacco cost recovery framework and will publish a summary,” the document states.
Consultations on the cost recovery strategy are scheduled to take place from August 1 to October 10, according to the document.
The document highlights that smoking is the primary preventable cause of premature death in Canada, with an estimated 46,000 deaths attributed to tobacco-related illnesses annually.
Despite a decline in tobacco use, 11.9 percent or 3.8 million Canadians continue to smoke.
Regarding younger individuals, 59 percent of students in grades 7–12 stated that it would be fairly easy or very easy to access cigarettes if they desired. Furthermore, 15 percent of students in these grades admitted to trying smoking.
However, 47.5 percent of those aged 20 to 24 reported trying vaping, in contrast to 14.7 percent of individuals over 25 years old. One in five Canadians aged 20 to 24 reported vaping in the last month.
