March 7, 2025
Canadian Lung Association Applauds Government's Move Towards Tobacco Industry Cost-Recovery
The Canadian Lung Association (CLA) is pleased to see the Canadian government's move forward with the implementation of a cost-recovery fee on tobacco manufacturers. This fee would require the industry to contribute financially to federal public health initiatives aimed at tobacco control.
What you need to know:
The tobacco industry has an enormous impact on the health of Canadians. Tobacco remains the leading cause of preventable disease and death in Canada, causing over 46,000 deaths annually and costing the healthcare system over $6 billion per year.
The tobacco industry remains highly profitable. Major tobacco companies have enjoyed substantial profits, exceeding $1 billion annually, and therefore can easily afford the proposed cost-recovery fees.
The tobacco industry must be held accountable and made financially responsible. Tobacco companies must take responsibility for the health consequences of their products. CLA has long advocated for this measure, arguing that the tobacco industry should bear the financial burden of public health efforts to combat the devastating effects of smoking.
The government is committed to and invested in tobacco control. The federal government has invested heavily in tobacco control, aiming to reduce smoking rates to less than 5% by 2035 through initiatives like the Federal Tobacco Strategy, which includes $66 million in annual funding. The revenue generated from these fees will enable further investments in lung health programs, including youth prevention and smoking cessation support.
The precedent has been set in the cannabis sector. The government's approach mirrors the cost-recovery model implemented in the legalized cannabis sector through the 2018 Cannabis Fees Order.
“Ultimately, the goal of these fees, and the programs they fund, is to reduce tobacco consumption and improve the overall health of Canadians,” says Sarah Butson, CEO of CLA. “At the same time that we’re seeing progress in this area, we need to consider the potential for such important measures to apply to vaping products so that we can protect future generations from the effects associated with nicotine dependence.”
The results of the most recent Canadian Substance Use Survey (2023) show that 28% of 15-to-19-year-olds had vaped in the past 30 days, compared to 10% of adults. Past-30-day smoking rates were 14% and 13% respectively.
