Whitehorse Daily Star

Low, fixed-income smokers will feel tobacco tax pinch

The proposed increases to the territory's tobacco tax could be good for the health of the territory, but have some negative impacts for low-income smokers, the head of the Yukon Anti-Poverty Coalition said this morning.

By Stephanie Waddell on March 25, 2008

The proposed increases to the territory's tobacco tax could be good for the health of the territory, but have some negative impacts for low-income smokers, the head of the Yukon Anti-Poverty Coalition said this morning.

From a health point of view, the significant jump may encourage some Yukon smokers to quit and discourage others from starting the habit, Ross Findlater said.

However, it also means that the jump will impact smokers (who don't quit) on a low or fixed income most, he said in an interview.

"Like any increase, it will hit low-income (Yukoners) most," he said.

The changes were written into the new $900-million territorial budget tabled in the legislature last Thursday.

They would see taxes on cigarettes rise from 13.2 cents per cigarette to 21 cents on each smoke - or almost $2 a pack.

Loose tobacco would go up 4.68 cents per gram to 21 cents per gram. If adopted, the changes would take effect on July 1.

The planned price increases come on top of a rise in costs recently to everything from gasoline to rents in the territory, Findlater pointed out.

"What isn't going up right now?" he asked.

While Findlater noted the impact on low-income smokers could mean more people visiting Maryhouse or the Salvation Army for assistance with food, he personally supports the changes if the intent is to help people quit.

"I think smoking has a very costly effect on Yukoners," he said, pointing to smokers' added health care costs to the territory.

He would like to see the government put any additional resources from the tax increase into wide-ranging programs that would encourage Yukoners to quit smoking.

The local branch of the Canadian Cancer Society has pamphlets available and helps fund the Smokers Helpline for those who are trying to quit the habit (1-877-455-2233).

Scott Kent is the regional manager of the Yukon branch of the Canadian Cancer Society.

He said this morning the government is doing quite a bit of work with its tobacco control programs and will leave it to the government to decide how to spend any extra resources coming from the higher tobacco taxes.

"The Yukon's made large strides this year," Kent said, referring as well to the Smoke-Free Places Act that is set to be come forward with amendments in the legislature.

Kent is hopeful the tax amendments are an indication the government will vote in favour of the Smoke-Free Places Act when it comes forward.

The act brought forward by the NDP that initially proposed a territory-wide smoking ban would see smoking banned in all public places throughout the territory. as well as in all vehicles carrying people under 19.

During the 2007 consultations over the Smoke-Free Places Act, the society had made numerous recommendations for the act.

It has urged that taxes be raised to match the other two territories which have the highest tax rates for cigarettes and the closure of the loophole permitting loose tobacco to be taxed so low.

"We're pretty excited about it," Kent said of the proposed boost.

The territory has been lagging behind since 2002, when taxes were last increased, he said.

At that time, the federal and all territorial and provincial governments increased tobacco taxes, the cancer society website notes.

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