Saskatchewan’s Vapour Products Tax will increase smoking rates

Hamilton, Ontario, CANADA


Beamsville, ON, April 20, 2021 (GLOBE NEWSWIRE) -- Saskatchewan recently announced a 20% vapour products tax, set to come into effect on September 1, 2021. The Canadian Vaping Association (CVA) cautions Saskatchewan that taxing vapour products leads to increased smoking rates and harms public health.

The province has stated that the tax is meant to deter youth use, however given the data finding a correlation between vape taxes and increased smoking rates, the province must consider the interests of all. A study conducted by Minnesota, “The impact of E-cig taxes on smoking rates: Evidence from Minnesota,” found that taxing vaping products would lead to an 8.1% increase in tobacco use and a smoking cessation decrease of 1.4%. It also found that if vapour products had not been taxed an additional 32,400 adults would have quit smoking.

Vapour products and traditional cigarette sales are closely tied as economic substitutes, if the cost of one increases, sales of the other will increase. Researchers monitored the sales data of 35,000 retailers and found that for every 10% increase in e-cigarette prices, sales of vaping products dropped 26 percent. The higher tax on e-cigarettes resulted in an 11% increase in sales of traditional cigarettes.

“We have shared the research with the Government of Saskatchewan, showing the harmful effects taxes have on smoking rates and public health. Vapour product taxes harm adult smokers and strengthen dangerous black-market channels,” said Darryl Tempest, Executive Director of the CVA.

The CVA calls on the Government of Saskatchewan to scrap the tax and work with industry to create an alternative framework to protect youth.

 

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