A cost-recovery fee for the tobacco industry has long been something that the Canadian Lung Association has called for. Today, the Canadian government revealed a proposal to implement a cost-recovery fee that would require tobacco manufacturers to pay for the cost of federal public health investments in tobacco control.

Tobacco continues to be the number one cause of preventable disease and death in Canada, killing over 46,000 annually. Despite public health education and prevention efforts, more than 3 million Canadians currently smoke. The healthcare costs alone of tobacco use in Canada exceeds $6 billion a year.

The federal government has and is investing significantly in tobacco control. In 2018 the Federal Tobacco Strategy announced an ambitious goal of reaching less than 5% smoking rate by 2035. Health Canada committed $330 million over five years, or $66 million annually to help Canadians quit and protect the health of young people and non-smokers. This cost burden should not rest solely on Canadian taxpayers; the tobacco industry needs to pay their fair share. This approach has been in place in the cannabis sector since it was legalized in 2018.  The 2018 Cannabis Fees Order was enacted to help recover the costs of regulating the cannabis industry by charging those that benefit from the legal market and reducing costs to taxpayers.

“It’s time that the tobacco industry pays for the costs of public health efforts aimed at controlling its products. Industry accountability must be front and centre,” says Sarah Butson, CEO of the Canadian Lung Association. “As the major tobacco companies consistently profit over $1 billion a year, they can easily afford the cost-recovery fees. And an annual fee on tobacco companies would allow the government to make further investments in the lung health of Canadians, allowing for sustained and evidence-based programming to support Canadians across the spectrum from preventing youth from starting to supporting people to quit.”

View the government's Consultation document: Proposed tobacco cost recovery framework

Read more about CLA's work to fight smoking and vaping