OTTAWA: Ottawa is increasing the tax on cigarettes in the federal budgetannounced Tuesday. The excise duty will increase by an additional $1 per carton of 200 cigarettes, from $21.56 to $22.56. The federal government will also increase duty rates on other tobacco products.
The budget is also making inflationary adjustments on tobacco products annually rather than every five years, as was done in the past.
The government will also invest $80.5 million over five years in the Federal Tobacco Control Strategy, which is meant to limit the distribution of contraband tobacco.
“Tobacco taxation is known to be one of the most effective ways to reduce smoking, and to keep tobacco products out of the hands of young people,” the budget said.
The Canadian Convenience Stores Association opposed the increase, stating that it benefits dealers of contraband tobacco.
“The decision to hike tobacco taxes is a big step in the wrong direction, which only benefits the black market at the expense of law-abiding corner stores,” said a press release from the organization.
Rob Cunningham, a senior policy analyst at Canadian Cancer Society, endorsed the budget measures, saying they would reduce the number of smokers and aid public health.
