Alberta's tobacco tax increase receives warm welcome from anti-smoking advocates

With Budget 2024 increasing Alberta’s tobacco tax and introducing plans for a new vaping tax, advocates calling for stronger smoking laws say it could mean Albertans will kick the habit.

Finance minister calls smoking, vaping 'serious public health issues'

Aaron Sousa. · CBC News · Posted: Mar 07, 2024 12:07 AM EST | Last Updated: March 7

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Alberta's government is increasing the province's tobacco tax — meaning the price tag on a package of cigarettes is now higher.

Raine McIver picked up their first cigarette three years ago for the social aspect. Whenever they needed a pack, they would head to their local gas station and buy the cheapest brand.

McIver, now 21, is looking to kick the habit and said the increase could mean that happens sooner.

"Now when I want to go out and buy cigarettes, I think about how expensive it is and then it helps me not buy a pack," they said.

With Alberta's newly tabled spending plan including an increase to the province's tobacco tax and plans for a new vaping tax, advocates calling for stronger smoking laws say it could mean Albertans, like McIver, will kick the habit.

During last week's budget announcement, Alberta Finance Minister Nate Horner confirmed the provincial government would increase the province's tobacco tax by 2.5 cents per cigarette, averaging out to $60 per carton.

The tax increase, which would be the first since 2019, would raise an extra $25 million in revenue this year.

Horner said the tax on smokeless tobacco would also go up, and announced plans for the province to start collecting a tax on vaping products by Jan. 1, 2025, joining a pre-existing federal-provincial co-ordinated vaping tax framework.

A vaping tax would generate about $4 million in provincial revenue this year.

A man at a podium with a piece of paper.

"Smoking and vaping continue to be serious public health issues in Alberta, causing considerable harm to many Albertans," he told reporters last week.

"We hope to see revenues from these taxes dwindle over time as more people quit."

Despite the increase, Horner said Alberta still has the lowest taxes on cigarettes across western Canada.

According to figures from Physicians for a Smoke-Free Canada, the average price of a pack of cigarettes in Alberta is $15.68. British Columbia is the most expensive western Canadian province, cashing in at $17.34.

McIver thinks the increase will force some people to quit smoking, but also make it challenging for people who don't wish to.

"Their habit is now more expensive than it already was," they said.

Les Hagen, executive director for ASH Canada, an Edmonton-based organization advocating for tobacco control, told CBC News raising the taxes is the most effective method of steering youth away from smoking and vaping.

Someone is holding up different vaping products.

He said Canada is facing what he called an epidemic of youth vaping. He said it's estimated that more than 300,000 school-aged youth use vape products like e-cigarettes in the span of a month. He said that figure translates to roughly 40,000 youth in Alberta.

"It's a huge issue and governments need to tackle this problem," Hagen said. "Taxation is a key part of that."

Rob Cunningham, a senior policy analyst with the Canadian Cancer Society, said the increase is good news for public health and would reduce smoking among youth.

"Teenagers are especially responsive to higher taxes. Thus, this increase is one that — from a health perspective — is very good," he said.

"This tobacco tax increase is a win-win because it's not only going to reduce smoking, but it's also going to increase government revenue."

Hagen said he would now like to see Alberta band together with other provinces to call on the federal government to implement a national ban on flavoured tobacco and vaping products.

He also said his group is thrilled to see Alberta move forward with implementing the vaping tax, but believes it could be done faster.

"They are planning to implement this tax in January, they could do it in July," he said.

ABOUT THE AUTHOR

Aaron is a reporter with CBC Edmonton. Originally from Fredericton, N.B., he was editor-in-chief of his campus newspaper, The Aquinian. He enjoys creative writing, poetry, photography and music. He can be reached at aaron.sousa@cbc.ca.

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