Tag: Canada

Ontario to Double Vaping Tax

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Ontario, in partnership with Canada’s national government, will double the tax on all vaping products sold in the province.
The federal/provincial tax partnership scheme that was announced in 2022 allows provinces to double the current federal vape tax and keep half the proceeds, according to Vaping360.
The Canadian Vaping Association (CVA) urged the federal government to reconsider its proposal to impose an additional provincial levy, as this would effectively double the already substantial tax burden. “The CVA suggests a more equitable approach where the federal government shares the revenue generated by the current levy with the provinces,” the industry group wrote in a statement.
“With the introduction of the excise tax, depending on product type, vape products are now almost as expensive as cigarettes despite the significant reduction in risk,” the statement says.
The CVA cautioned that the increased tax may lead to more illicit trade. “Legal businesses will find it nearly impossible to compete with the unregulated market that remains largely unchecked. The consequence of such punitive taxation will be widespread business closures, significant job losses and an increase in criminal activity.”
“The CVA encourages the province to leverage its negotiating influence with the federal government to establish a fair revenue-sharing framework for the existing tax revenue. Preserving the regulated market, rather than destroying it, will lead to higher tax revenues. The additional revenue generated can be used by the province to increase enforcement resources and support educational programs for youth,” said Darryl Tempest, government relations counsel to the CVA.
November 7, 2023
Quebec: Flavor Ban Takes Effect

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Quebec’s ban on flavored vapes took effect Oct. 31.
The measure includes vaping products with flavors other than tobacco and will prohibit e-liquid sold in bottles with a capacity greater than 30 mL and prefilled devices with a capacity greater than 2 mL.
The ban was announced in a draft published in April. More than 30,000 citizens of Quebec commented on the proposed ban, according to the Quebec Vaping Rights Coalition, but the health ministry reportedly didn’t make any changes to the rules in response.
Quebec is the largest province in Canada to enact a flavor ban. Four other provinces and territories already ban flavors, and one has passed a ban but has not set an effective date yet. Three other provinces restrict flavored products to adult-only stores.

Darryl Tempest
“It’s high time for provinces like Quebec, New Brunswick, Nova Scotia and PEI to reevaluate their stance and stop yielding to the influence of big tobacco companies. These regions must come to the realization that they are inadvertently supporting the very issues they claim to be combating.”
Darryl Tempest, government relations counsel to the CVA
The Canadian Vaping Association (CVA) has expressed concerns to the Quebec government, arguing that this regulation will not achieve its intended goal of curbing youth experimentation.
According to the CVA, the consequences will include the closure of specialty vape shops within the province, the loss of over 1,000 jobs and a shift in consumer demand toward foreign suppliers and the illicit market.
“It’s high time for provinces like Quebec, New Brunswick, Nova Scotia and PEI to reevaluate their stance and stop yielding to the influence of big tobacco companies. These regions must come to the realization that they are inadvertently supporting the very issues they claim to be combating,” said Darryl Tempest, government relations counsel to the CVA.
The available data consistently finds that flavor bans fail to effectively protect youth and lead to increased tobacco sales among both young people and adults.
November 1, 2023
Health Canada Licenses Nicotine Pouch

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Health Canada has granted Nicoventures Trading permission to sell Zonnic, a nicotine pouch that can help adult smokers quit smoking by delivering nicotine to the body. The product will be distributed in Canada exclusively by BAT subsidiary Imperial Tobacco Canada (ITCAN).
“This is a first for Canada. No other nicotine pouch has received Health Canada’s authorization. Zonnic will give smokers a new option to help them quit smoking,” said ITCAN President and CEO Frank Silva, President in a statement.
“We all agree, smoking is the cause of serious diseases, and we are committed to reducing the health impact of our business. The addition of Zonnic to our product portfolio is the next step in this journey.’’
Zonnic, which temporarily relieves cravings and nicotine withdrawal symptoms, is licensed as a Natural Health Product and has been authorized for sale by Health Canada for use as a form of Nicotine Replacement Therapy (NRT). Zonnic contains no tobacco.
As part of its license application, Nicoventures provided all information required by Health Canada, including a pharmacokinetics study that assessed the bioavailability of nicotine in Zonnic in comparison to other commercially available NRTs. The study showed that Zonnic nicotine pouches effectively deliver nicotine, and are comparable to other commercial brands.
“Canada has a golden opportunity to achieve its reducing smoking rates below 5 percent by 2035. We just have to look at Sweden to see how it can be done. Sweden is about to become the first smoke free country,” said Silva. “This is being achieved by embracing new, less harmful nicotine products and creating a policy environment which encourages smokers to move away from smoking. With Canadian smoking rates at an all-time low, we believe that Zonnic can reduce rates even further, and help Canada get the same results as Sweden.”
‘’I am immensely proud to add Zonnic to our product portfolio that hit the shelves this week in convenience stores and later this year in pharmacies. Offering a range of less harmful products to smoking will benefit our adult consumers and society as a whole,’’ concluded Silva.
October 12, 2023
Stick Warnings Take Effect in Canada

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A new rule requiring warning labels on individual cigarettes in Canada takes effect today, reports The Canadian Press.
The move, announced earlier this year, makes Canada the first country to take that step to deter smoking.
Under the new law, cigarette manufacturers will be required to print messages in English and French on the paper around the filter, warning smokers about the risk of damage to organs, impotence and leukemia, among other diseases.
Manufacturers have until the end of July 2024 to ensure the warnings are on all king-size cigarettes sold, followed by regular-size cigarettes and little cigars with tipping paper and tubes by the end of April 2025.
Rob Cunningham, a senior policy analyst at the Canadian Cancer Society, believes the labels will dissuade teens leaning toward taking up the habit and encourage nicotine-dependent adults to quit.
Dozens of studies in Canada and elsewhere show the effectiveness of printing warnings on each cigarette, he noted.
Tobacco advertising, promotion and sponsorship are banned in Canada, with warnings on cigarette packs dating back to 1972.
In 2001, Canada became the first country to require tobacco companies to print pictorial warnings on the outside of cigarette packages and include inserts with health-promoting messages.
Federal rules ban packaging that includes brand colors or trademarks.
The tobacco industry has warned against unintended consequences. The National Coalition Against Contraband Tobacco, which is funded by Canada’s leading cigarette manufacturers, warned in June that cheaper, colorful black-market packs free of health warnings attract young smokers and funnel more money to organized crime.
While acknowledging that big tax hikes or sales bans would indeed benefit the black market, Cunningham believes that gradual price boosts and more strident messaging can bring down smoking rates.
“The only real reason that they can oppose something is because it’s going to have a reduction in sales— and that is exactly the point,” he said of the manufacturers.
August 1, 2023
Tobacco Smuggling Costs Billions

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Cigarette manufacturers estimate that tobacco smuggled across Canada costs billions in lost taxes, according to a report to Parliament, reports Western Standard.
“The excise reporting gap was estimated to be on average $400 million of federal excise revenue for the tax years 2014 to 2018,” the Cabinet wrote in an Inquiry of Ministry tabled in the Commons. The $400 million figure included tax revenue lost to contraband of all kinds.
“How much does the government collect in tobacco taxes annually, and what is the amount of federal tax revenue that is lost from the sale of illegal, untaxed tobacco?” asked Conservative Member of Parliament Philip Lawrence.
“Illegal tobacco costs around $2 billion annually in lost tax revenue with that money diverted to some of Canada’s most notorious organized crime groups,” wrote Ralf Wittenberg, Imperial Tobacco Canada CEO. “Despite this, the federal government has barely mentioned illegal tobacco since 2015, let alone taken any measures to address it.”
“Canada’s illegal tobacco problem is now a national issue that spills beyond our borders, with illegal Canadian product turning up in the United States, Mexico, the Caribbean and Central America,” said Wittenberg. “Domestically, after several years of relative stability, the illegal market is growing again.
“This has been driven mainly by persistently high rates in Ontario estimated at 35 percent to 40 percent and a recent explosion in British Columbia, where we estimate the rate has grown to 35 percent.
“Numerous reports from law enforcement agencies, think tanks and media have drawn clear links between illegal tobacco and other criminal activities, including drug and weapons trafficking.”
June 14, 2023
Individual Stick Warnings Coming

Image: Tobacco Reporter archive
Canada will soon require that health warnings be printed directly on individual cigarettes—becoming the first country in the world to take this approach, according to the Government of Canada.
The new Tobacco Products Appearance, Packaging and Labeling Regulations will be part of the government of Canada’s continued efforts to help adults who smoke to quit, to protect youth and nontobacco users from nicotine addiction and to further reduce the appeal of tobacco. Labeling the tipping paper of individual cigarettes, little cigars, tubes and other tobacco products will make it virtually impossible to avoid health warnings altogether. In addition, the regulations will support Canada’s Tobacco Strategy and its target of reaching less than 5 percent tobacco use by 2035, according to a government press release.
These regulations will come into force on Aug. 1, 2023, and will be implemented through a phased approach that will see most measures on the Canadian market within the year. Retailers will carry tobacco product packages that feature the new health-related messages by the end of April 2024. King-size cigarettes will be the first to feature the individual health warnings and will be sold by retailers in Canada by the end of July 2024 followed by regular size cigarettes, little cigars with tipping paper, and tubes by the end of April 2025.
Other measures include strengthening and updating health-related messages on tobacco product packages; extending the requirement for health-related messaging to all tobacco product packages; and implementing the periodic rotation of message.
The new regulations will be published in the June 7, 2023, edition of the Canada Gazette—Part II. In the interim, copies of the full regulations are available upon request by contacting pregs@hc-sc.gc.ca.
June 1, 2023
Group Blasts Quebec Flavor Ban Proposal

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A proposal by the government of Quebec to ban nontobacco-flavored nicotine vaping products will have negative consequences for public health if enacted, according to the Canadian Vaping Association (CVA).
In addition to the flavor restrictions, the recently released draft legislation proposes a volume limit of 2 mL on prefilled devices and a limit of 30 mL on refill containers. Additionally, the regulations would restrict nicotine concentrations to 20 mg/mL and prohibit the use of any form, appearance or function that may be attractive to minors, both of which have already been regulated by the federal government.
If the draft rules are implemented, Quebec, with its population of 8.5 million, will become the largest Canadian province to prohibit flavors, according to Vaping360. Quebec is the country’s second-most populous province. According to the Alliance of Vape Shops in Quebec, there are over 400 independent vape shops in the province, employing over 2,200 people and generating more than $300 million in economic activity. The trade group predicts the shops will all close.

Quebec’s decision to ban flavors is a major win for tobacco companies, out-of-province vendors and contraband sellers.
Darryl Tempest, government relations counsel to the CVA board
In 2021, federal health agency Health Canada proposed a flavor ban that was scheduled to take effect in early 2022, but that plan seems to have been abandoned or postponed indefinitely without explanation. Health Canada’s updated vaping products regulations page makes no mention of the flavor restrictions.
The CVA says Quebec proposed its rules despite warnings by the industry about their negative impacts. Vaping is proven to be significantly less harmful than smoking, according to the CVA, which says there is substantial evidence from jurisdictions that have already implemented flavor bans that the public health outcome is negative, as many vapers will return to smoking and fewer smokers will switch to vaping.
“Quebec’s decision to ban flavors is a major win for tobacco companies, out-of-province vendors and contraband sellers,” said Darryl Tempest, government relations counsel to the CVA board, in a statement. “What Quebec has done is shift demand to tobacco owned products, retailers outside of Quebec and criminals. Quebec’s small businesses and domestic industry will be irreparably harmed in favor of multinational corporations,” said Tempest.
April 21, 2023
Menthol Ban Failed to Boost Illegal Sales

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Banning menthol cigarettes does not lead more smokers to purchase menthols from illicit sources, according to a new research study published in Tobacco Control.
Researchers at the International Tobacco Control (ITC) Policy Evaluation Project at the University of Waterloo evaluated the impact of federal and provincial menthol cigarette bans in Canada by surveying smokers of menthol and nonmenthol cigarettes before and after Canada’s menthol ban.
Smokers were asked whether their usual cigarette brand was menthol-flavored and to report their last brand purchased. Those who were still smoking after the menthol ban were also asked where they last purchased their cigarettes.
Results showed that after the ban, there was no significant change in the purchase of cigarettes from First Nations reserves, the main source of illicit cigarettes in Canada.
“The tobacco industry has a long history of claiming that policies to reduce smoking will lead to substantial increases in illicit trade,” said Janet Chung-Hall, a research scientist for ITC and lead author of the new study, in a statement. “We can add the Canadian menthol ban to the long list of effective policies, such as graphic warnings and plain packaging, whose evaluation disproved the scare tactics by industry—showing that illicit trade did not, in fact, increase.”
A 2022 study that combined the ITC project data with data from a comparable Ontario evaluation study showed that the Canadian menthol ban led to an increase of 7.3 percent in quitting among menthol smokers above that of nonmenthol smokers. Projecting this effect to the U.S., whose Food and Drug Administration has proposed its own menthol ban, the ITC researchers estimate that a U.S. menthol ban would lead 1.33 million smokers to quit.
“Our previous research from Canada and the Netherlands showed that a menthol cigarette ban leads to significant reductions in smoking,” said Geoffrey Fong, principal investigator of the ITC project and professor of psychology and public health sciences at Waterloo. “These findings combine to provide powerful evidence in support of FDA’s proposed menthol ban.”
January 12, 2023
Cabbacis Patents Low-Nicotine Pods in Canada

A U.S. federally licensed tobacco product manufacturer focused on harm reduction products announced today that the Canadian Intellectual Property Office (CIPO) has issued patents for its pods comprising blends of very low-nicotine tobacco and hemp for use with electronic nicotine-delivery systems (ENDS).
Canadian Patent No. 3,151,047 was issued to Cabbacis and includes 27 claims which will expire on September 10, 2040. Earlier in 2022, CIPO also issued Patent No. 3,107,796 to Cabbacis for cigarettes comprising blends of very-low-nicotine tobacco and hemp.
“I am pleased that both types of our products are now patented in Canada, which is one of our early target countries for commercialization,” said Joseph Pandolfino, founder and president of Cabbacis.
Credit: Feng Yu
Primary applications of the company’s very low-nicotine cigarettes and vaping pods in development comprising blends of very low-nicotine tobacco and hemp are to assist smokers of conventional cigarettes to smoke less, transition to less harmful tobacco or nicotine products or quit nicotine use altogether, according to a press release.
Cabbacis’ patent portfolio includes 25 issued patents and various pending patent applications across the United States, Europe, China, Japan, South Korea, Canada, Australia, New Zealand, Mexico, Brazil and other countries. The company holds six U.S. patents.
December 29, 2022
PMI, Medicago Cut Ties After WHO Rejection

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Philip Morris International and the health group Medicago have severed ties after the World Health Organization rejected Medicago’s Covid-19 vaccine, according to a tobacco control body.
Covifenz, the world’s first plant-based Covid-19 vaccine, was jointly developed by Medicago, which is owned by Mitsubishi Chemical, Philip Morris and Glaxo, according to Bloomberg. The Canadian government, which provided $173 million in funding for its development, has cleared it for use.
The government of Quebec previously said it wanted to help Medicago replace its shareholder PMI with another investor so that the biotech firm can distribute its Covifenz Covid-19 vaccine internationally.
“Tobacco corporations, vaccines and governments don’t mix well, and we applaud the expulsion of Philip Morris from the Medicago collaboration,” Les Hagen, the executive director of not-for-profit organization ASH Canada, said in a statement.
Medicago’s request for an emergency-use listing was denied earlier this year by the World Health Organization because of the links with tobacco industry.
Earlier this year, Medicago announced it would cut 62 jobs at its manufacturing facility in Durham, North Carolina, USA, which played a key role in producing the company’s tobacco plant-based Covid-19 vaccine.
December 26, 2022