Has the Canadian tobacco industry benefited from the federal tax hike on cigarettes to increase its own share of profits? This is what the Quebec Coalition for Tobacco Control believes in a statement sent Monday by email.
THE TOBACCO INDUSTRY BENEFITS FROM THE TAX INCREASE?
According to the organization, the report is final: data from Health Canada in hand, it is said that the tobacco industry has "substantially increased its prices and, after denouncing the latest tax increases, including the increase in the federal tax of 4 $ the cartridge in February 2014 and the increase of 4 $ of the Quebec tax during the month of June of the same year ". Thus, the argument that too high prices fuel the black market does not hold water, hammers the coalition.
The organization goes even further: still citing information from Health Canada, the price increases for cigarette cartons since 2014 have averaged $ 4,60 " will result in an increase in industry revenue of 156 millions of dollars annually ».
In the Montreal area, this price increase would be even more pronounced. From July 2015 to December 2016, the big names of the cigarettes would thus have accosted increases exceeding the equivalent of new federal and provincial taxes. These increases vary between 4,50 $ at Philip Morris, and 5,00 $ at Du Maurier. Yet, it is recalled, tobacco companies were mounted barricades when announcing new taxes, Imperial Tobacco even speaking of a decision of Minister Leitao could be described as " scandalous " and " irresponsible ».
« While ignoring governments on the threat of smuggling whenever it is a question of raising the tobacco tax, the industry quietly raises the price of cigarettes itself, often by equivalent to the tax increases it describes! "Flory Doucas, spokesman for the Quebec Coalition for Tobacco Control. " Industry believes that increasing the market price of cigarettes is a risk for smuggling only in the case of higher taxes, and never when it is caused by price increases. the manufacturer. This is pure and simple hypocrisy. »
In the eyes of the coalition, the tobacco industry deprives the state of sums that come back to it by loudly denouncing the tax increases, as well as brandishing " the scarecrow Of the increase in black market shares.
For Ms. Doucas, " the margin available to increase prices should go to the taxpayers, since it is to them that the huge bill of health care attributable to tobacco is passed on ". Worse yet, it is argued, the 1,1 billion dollars currently generated by the Quebec tax on tobacco comes from the pockets of smokers, not industry gussets.
Source : Pieuvre.ca
