Canada Ontario Set to Increase Cigarette Prices

Source from:  The Star 02/26/2016

Smokers beware: the price of your addiction is about to go up.

An extra levy on cigarettes was announced in the 2016 Ontario budget, tabled on Thursday, to the tune of about $3 per carton of 200 cigarettes.

The move comes as the province seeks to simultaneously raise revenues and discourage smoking. The Ministry of Health and Long-term Care says the practice costs the province $1.6 billion a year in direct health costs.

Smoking has declined 17.4 per cent in the province since 2014, and Ontario has the third lowest rate in the country.

But we still have further to go, the province says. Smoking is the top cause of death and disease in Ontario, according to the province, claiming 13,000 lives a year. The government says it hopes a tax increase will help convince smokers to quit.

Starting in 2017, tobacco taxes will increase with the rate of inflation. The province has earmarked $5 million from the tax's revenue this year to go towards smoking cessation services. Since 2011, 94,600 smokers received provincial support over the phone or in person to quit smoking.

At least one anti-smoking group was displeased with the announcement.

"We are disappointed that the tax increase is so low," said Melodie Tilson, policy director of the Non-Smokers'Rights Association.
"We are particularly disappointed that the government has adopted the approach advocated by the tobacco industry and its allies-small, incremental, predictable increases in taxes-by committing to raise taxes annually to keep pace with inflation," she added. Enditem