Fri, May 18, 2012
Tobacco Reporter Magazine Content:
Lowering taxes has little effect on cigarette sales
Jan 14, 2010—A study based on Canadian federal data suggests that lowering tobacco taxes has little effect on consumption, according to a UPI story.
The Canadian Convenience Stores Association (CCSA) recently asked the HEC Montreal business school to study what happened in 1994 when the federal government slashed tobacco taxes to break the black market.
Using data collected by Statistics Canada on smoking trends, HEC Montreal Associate Professor Jean-Francois Ouellet found that tax rates had minimal effect on usage.
CCSA Vice President Michel Gadbois said that this was evidence the government was costing itself revenue while having no impact on smoking rates.
Currently, a pack of 20 cigarettes on which all local taxes have been paid is priced at $9 in Toronto, whereas illicit cigarettes can be bought for as little as $2.
Jan 14, 2010—A study based on Canadian federal data suggests that lowering tobacco taxes has little effect on consumption, according to a UPI story.
The Canadian Convenience Stores Association (CCSA) recently asked the HEC Montreal business school to study what happened in 1994 when the federal government slashed tobacco taxes to break the black market.
Using data collected by Statistics Canada on smoking trends, HEC Montreal Associate Professor Jean-Francois Ouellet found that tax rates had minimal effect on usage.
CCSA Vice President Michel Gadbois said that this was evidence the government was costing itself revenue while having no impact on smoking rates.
Currently, a pack of 20 cigarettes on which all local taxes have been paid is priced at $9 in Toronto, whereas illicit cigarettes can be bought for as little as $2.
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