The federal budget will see tobacco and vaping taxes increase, which the government is hoping will generate CAD 1.7 billion in new revenue, reports Global News.

The government plans to increase spending on pharmaceutical programs to CAD 59 million a year and increase this budget to CAD 477 million by 2027. According to Global News, the new costs will be entirely offset by renewed efforts laid out in the budget to discourage people from smoking and vaping. Health Minister Mark Holland had already announced his plan to crackdown on tobacco and nicotine companies who were marketing products towards youths.
“Whatever dark corner the tobacco industry crawls and creeps into to go after our children, wherever they go, whatever loophole they think they can find, they will meet me like an iron wall,” he said.
The government plans to increase the excise tax on a carton of cigarettes by CAD 4, in addition to the automatic inflation increase of CAD 1.49 and it is estimated that will bring in CAD 1.36 billion over five years, reports Global News.
Taxes on vaping products will also go up by 12 per cent in the summer and will bring in around CAD 310 million over five years.