A SURE UCP VOTE GETTER

Cancer society says Alberta chewing tobacco tax reduction 'lose-lose'
RED NECK TOBACCO 

Sat., February 26, 2022

A pinch of chewing tobacco being taken from a can. (CBC - image credit)

A policy analyst at the Canadian Cancer Society says Alberta is moving in the wrong direction by rolling back taxes on some types of tobacco products — something which could reduce the province's revenue by $10 million.

Chewing tobacco and snuff is a "real problem" in Alberta, especially among young men, said Rob Cunningham, senior policy analyst with the Canadian Cancer Society, based out of Ottawa.

"This is a product that is addictive and causes cancer," he said.

The UCP is lowering the tax rate on smokeless tobacco, which includes products like chewing tobacco or snuff. Currently taxed at 41.25 cents per gram, it will have a new rate of 27.5 cents per gram, the same as the province's cigarette tax rate.

This change will take effect on Mar. 1, and the province estimates it will reduce its revenue by $10 million in 2022-23.

Cunningham says high tobacco tax is an effective strategy to reduce tobacco use, especially among youth.

"By lowering taxes and even giving up $10 million of revenue per year, this is a lose-lose."

'It's popular regardless'

Jo Calliou, manager at Cheap Smokes and Cigars in Calgary, says of the shop's smokeless tobacco products, snuff in particular is very popular.

And while she's never seen a tax roll-back on tobacco in seven years in the business, she says it won't have much of an impact.

"It's a popular product regardless. Even if there was a tax increase, which we all anticipate, the customers are still there, they like their [snuff] products."

She also feels the tobacco customer has been unfairly targeted by the government, and said the uncommon rollback is "very interesting."

Province says it's about competition

Kassandra Kitz, press secretary for Alberta Finance Minister Travis Toews, said the province is aligning its taxation strategy with Saskatchewan, "our biggest competitor."

"By bringing our taxes on smokeless tobacco more in line with Saskatchewan, we will see more product purchased here, and a reduction in black market activity."