When looking at smoking prevalence, two things stand out. First of all, in developed countries, smoking prevalence has been falling for decades. What really stands out is that price increases through excise taxation and public education about the harms of smoking have probably had the single largest public health impact in Australia—and probably in Canada, and all over the developed world as well. My argument is that, if the Canadian government genuinely wants to do something about smoking prevalence, they should focus their efforts on excise taxation, public education, information, and also substitutes to smoking.
A lot of the debate that I've been hearing this morning seems to have this idea that there's good nicotine and bad nicotine, and that bad nicotine comes from the tobacco industry. However, there are substitute gums and vapours provided by the pharmaceutical industry that are tax-advantaged in most countries, and with this talk about banning vaping.... All these products deliver nicotine and should be treated equally, taxed equally, and put onto a level playing field.
With the excise increases in Australia, there have been two rounds of 50% increases phased in over four years since 2013. We're still in the second round right now, and there's also automatic indexation to weekly earnings. Every six months, the excise on tobacco gets increased by whatever the index amount is on weekly earnings. It used to be the CPI, but it was felt that the CPI was not keeping track of purchasing power.