Chapter 27 International

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International: Canada

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The large increases in cigarette taxes in Canada led to a 35% reduction in adult

consumption and a 62% decrease in consumption by teens between 1985 and 1991.

Preventing Tobacco Use Among Young People, 1994 Surgeon General report, p.

273

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In Canada, cigarette sales declined from 71.3 billion units in 1981 to 40.1 billion in

1992, a 44% drop in sales. Taxes per pack rose in this time from 96 cents to an

average of $3.58. Despite the drop in sales, tax revenue rose from $3.4 to $7.2 billion

during this time.

Washington Post, September 15, 1993

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About 30% of cigarettes smoked in Canada in the early 1990's were smuggled in,

including contraband cigarettes accounting for up to 75% of the market in Quebec.

Because of this, Prime Minister Jean Chretien slashed federal tobacco taxes by $11

per carton in February 1994.

JAMA, March 2, 1994, p. 647

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By early 1994, two-thirds of the cigarettes sold in Quebec and one-third of those sold

in Ontario were contraband. In February, the federal government in Ottawa cut the tax,

and the price of a "legal" carton of 200 cigarettes sold in Quebec fell from $47 to

$22.73 overnight. Public health authorities warn that despite cutting smuggling from

the United States, the price decreases will induce additional 245,000 Canadian

teenagers to begin smoking.

Canadian Medical Association Journal, April 15, 1994, p. 1295

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Monday, July 24, 2000

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