CCS has urged adoption of this measure for many years
OTTAWA, ON –
The Canadian Cancer Society (CCS) strongly supports final federal regulations announced today to require a cost recovery fee on tobacco companies. This measure will require the tobacco industry to provide reimbursement towards the annual cost of the government’s federal tobacco control strategy, based on each company’s market share. CCS has been calling for a cost recovery fee on tobacco companies for many years. Today’s announcement was made by Associate Minister of Health Ya’ara Saks.
The Tobacco Charges Regulations will place some of the tobacco control costs incurred by the federal government back on the tobacco industry. Rather than the federal tobacco control strategy – known as Canada’s Tobacco Strategy – being paid for by Canadian taxpayers, the new cost recovery fee would mean that the tobacco-related portion of the strategy will be paid for by the tobacco industry.
“Requiring tobacco companies to reimburse the government’s tobacco strategy costs is a matter of tobacco industry accountability,” says Rob Cunningham, Senior Policy Analyst, CCS. “The tobacco industry has caused the tobacco epidemic and the consequent devastation to the health and lives of Canadians. Tobacco companies should be responsible for paying for Health Canada’s costs of responding to the epidemic, rather than all Canadians.”
The final regulations announced today were released in draft form on August 1, 2024, and were subject to a public consultation ending October 10, 2024.
The federal government has indicated that the cost recovery fee will be implemented in 2 phases – the first phase will recover the costs of the tobacco part of the strategy from tobacco companies. The second phase will recover the costs of the strategy related to e-cigarettes. The government has not yet indicated the timing for the second phase, or the specific cost breakdown between the tobacco and the e-cigarette parts of the strategy. The overall strategy is $66 million per year, part of which will be recovered through the new regulations.
The federal tobacco cost recovery measure is different than the provincial lawsuits against the tobacco industry. Provinces and territories have been seeking to recovery tobacco-related health care costs, ultimately resulting in a settlement. The new federal regulations will not recover health care costs, but rather the annual costs of implementing the federal government’s tobacco control strategy.
The federal Tobacco Charges Regulations that are now final follow Royal Assent on June 20, 2024, to Bill C-59, the Fall Economic Statement Implementation Act, 2023. This legislation contains the enabling authority to adopt regulations requiring tobacco and vaping companies to reimburse the government for the cost each year of the federal tobacco control strategy. This part of Bill C-59 received unanimous support from MPs and all-party approval in the House of Commons with a third reading vote of 318-0 on May 28, 2024.
In the 2021 federal election, the Liberal Party, Conservative Party and NDP platforms each included a tobacco manufacturer cost recovery fee on tobacco companies to recover the annual $66 million cost of the federal tobacco control strategy.
In the U.S. since 2009, the Food and Drug Administration’s annual tobacco control budget, now US$712 million, is recovered from tobacco companies based on market share.
Tobacco use remains the leading preventable cause of disease and death in Canada, killing 46,000 Canadians each year, including about 30% of all cancer deaths. There are still 3.6 million people in Canada who smoke, representing 11% of the population aged 18+ (2023). Health Canada’s objective is to reduce tobacco use to less than 5% by 2035.
About the Canadian Cancer Society
The Canadian Cancer Society works tirelessly to save and improve lives. We raise funds to fuel the brightest minds in cancer research. We provide a compassionate support system for all those affected by cancer, across Canada and for all types of cancer. Together with patients, supporters, donors and volunteers, we work to create a healthier future for everyone. Because to take on cancer, it takes all of us. It takes a society.
Help us make a difference. Call 1-888-939-3333 or visit cancer.ca today.
For more information, please contact:
Rob Cunningham
Senior Policy Analyst
Canadian Cancer Society
613-762-4624