Price rises revealed

New data supplied by Health Canada reveals that tobacco companies have repeatedly hiked cigarette prices for several years while simultaneously fighting off federal and provincial tobacco tax increases, according to a press note by Physicians for a Smoke-Free-Canada.

The price increases amount to more than C$16 per carton since 2013 and, going forward, they will represent over C$2 billion in ‘lost’ revenue annually to the federal and provincial governments, said the note, which appeared also under the imprimatur of Action on Smoking and Health, the Canadian Public Health Association and the Quebec Coalition for Tobacco Control. Since 2013, the additional revenue of the companies was said to have totalled C$4 billion.

“The tobacco companies are playing Canadian finance ministers for dupes by fighting tobacco tax increases and pocketing billions in foregone tax revenue obtained through substantial price increases” said Les Hagen, executive director for Edmonton-based Action on Smoking and Health. “Federal and provincial governments are burdened with the enormous healthcare costs resulting from tobacco use and they should not allow tobacco companies to rob them of valuable revenue to defray these costs.

“Finance ministers should respond with tobacco tax increases that will match or exceed industry price increases in their forthcoming 2019 budgets. Tobacco companies should not be allowed to cash in on their objectionable efforts to derail tobacco tax increases.”