OTTAWA,
ON, Aug. 1, 2024 /CNW/ -The Canadian Cancer
Society (CCS) strongly supports a federal regulatory proposal
announced today to implement a cost recovery fee on tobacco
companies, a measure that will require the tobacco industry to
provide reimbursement towards the annual cost of the government's
tobacco control strategy. CCS has been calling for a cost recovery
fee on tobacco companies for many years and strongly supports the
measure.
Tobacco use is the leading preventable cause of disease and
death in Canada, killing 46,000
Canadians each year, including about 30% of all cancer deaths.
There are still 3.8 million people in Canada who smoke,
representing 12% of the population aged 12+.
A cost recovery fee will put some of those costs back on the
tobacco industry for the damages they cause, and at a later stage
the vaping industry. Rather than the federal tobacco control
strategy – known as Canada's
Tobacco Strategy – being paid for by Canadian taxpayers, a cost
recovery fee would mean the $66-million-a-year cost is covered by the tobacco
and vaping industry. The government has indicated that the cost
recovery fee will be implemented in 2 phases – the first phase will
recover the costs (perhaps about $50
million) of the tobacco part of the strategy from tobacco
companies. The second phase will recover the costs of the strategy
related to e-cigarettes. The government has not yet indicated the
timing for the second phase, or the specific breakdown between the
tobacco and the e-cigarette parts of the strategy. CCS urges that
the second phase be implemented as soon as it is feasible.
"The tobacco industry caused the tobacco epidemic and should be
responsible for paying for Health Canada's costs of responding to
the epidemic," says Rob Cunningham,
Senior Policy Analyst, CCS. "A cost recovery fee is a matter of
tobacco industry accountability. It's time that the
tobacco industry paid up."
In Canada, tobacco companies
have implemented massive windfall price increases on average of
$31.80 per carton of 200 cigarettes
over the 10-year period 2014-2023 inclusive, resulting in
incremental revenue of about $2
billion per year. The tobacco industry can easily afford to
pay the annual fee to recover the costs of the federal tobacco
control strategy.
"For decades the tobacco industry has gotten away with the costs
they cause," adds Cunningham. We urge the government to adopt the
final regulations as soon as possible to ensure tobacco industry
accountability."
The regulatory proposal released today is subject to a public
consultation ending October 10,
2024.
Today's regulatory proposal follows Royal Assent on June 19 to Bill C-59, the Fall Economic
Statement Implementation Act, 2023. This legislation contains
the authority to adopt regulations requiring tobacco and vaping
companies to reimburse Health Canada for the annual cost of the
federal tobacco control strategy. This part of Bill C-59 received
all-party approval and unanimous support from MPs in the House of
Commons with a vote on May 28, 2024,
of 318-0.
In the 2021 federal election, the platforms of the Liberal
Party, Conservative Party and NDP each included a cost recovery fee
on tobacco companies to recover the annual $66 million cost of the federal tobacco control
strategy.
In the U.S., a cost recovery fee has been in place since 2009 to
reimburse the Food and Drug Administration for its tobacco control
budget, now US$712 million annually.
Tobacco companies reimburse this amount to the FDA proportionately
based on market share. The Canadian regulatory proposal would also
see tobacco companies pay the fee proportionately based on market
share.
About the Canadian Cancer Society
The Canadian Cancer Society works tirelessly to save and improve
lives. We raise funds to fuel the brightest minds in cancer
research. We provide a compassionate support system for all those
affected by cancer, across Canada
and for all types of cancer. Together with patients, supporters,
donors and volunteers, we work to create a healthier future for
everyone. Because to take on cancer, it takes all of us. It takes a
society.
Help us make a difference. Call 1-888-939-3333 or visit
cancer.ca today.
SOURCE Canadian Cancer Society