FEDERAL GOVERNMENT REGULATIONS TO SHIFT MONEY FROM CLAIMANTS TO FRIENDS OF THE ANTI-TOBACCO LOBBY

MONTREAL, March 7, 2025 /CNW/ - Imperial Tobacco Canada (ITCAN) is deeply concerned about the federal government's last-minute rush to implement new regulations that impose a substantial cost-recovery fee on the tobacco industry, millions of dollars that will reduce the annual payments to be made to the provincial governments under the settlement that was just yesterday approved by the Court.

In ITCAN's opinion, the impetus behind these new fees appears to be a push from the anti-tobacco lobbying groups to secure funding for their programs.

The federal government, under the leadership of Health Minister Mark Holland, himself a former anti-tobacco advocate, has accelerated the implementation of new regulations that, according to ITCAN, would secure significant funding to these same lobbyists.

"The timing of this rushed regulation is more than just concerning, it's highly suspicious," said Eric Gagnon, Vice President of Corporate and Regulatory Affairs at Imperial Tobacco Canada. "The fact that this was pushed through just days before Minister Holland may leave office, raises serious questions about the true intent behind this decision."

Originally, Health Canada had assured stakeholders that the cost-recovery regulations would follow the normal consultation process. However, last month, the government quietly updated its Forward Regulatory Plan, bypassing the consultation phase and moving directly to final regulations in spring 2025.

Ineffective Use of Funds

Tobacco companies contribute significantly to government revenue, paying billions in taxes annually. These funds are meant to support various programs, yet the government is losing $4 billion each year due to inadequate enforcement against illegal tobacco and vaping products while ITCAN believes that illegal traffickers are, once again, off the hook and benefiting from government decisions.

"Despite significant funding, smoking rates in Canada are not declining as rapidly as in other developed countries like Sweden and New Zealand that have embraced Tobacco Harm Reduction," said Mr. Gagnon. "This suggests that the funds are not being used effectively and appear to be benefiting those within the tobacco lobby rather than making a real impact on the health of Canadians."

Access to Cessation Products

More recently, the government's policies have made it more difficult for Canadians to access effective cessation products such as Zonnic, a Health Canada approved nicotine replacement therapy product. By restricting these products to behind-the-counter sales at pharmacies, access to primary care is being limited for all Canadians. This approach undermines efforts to help individuals quit smoking and improve public health.

"If these lobbyists were truly focused on public health, they would have spent their time urging Minister Holland to take meaningful action, such as improving access to nicotine pouches or addressing the illegal and unregulated nicotine market," added Gagnon. "Instead, they pressured the government to secure funding for themselves, at the expense of settlement claimants while doing nothing to address the actual issues facing Canadians."

Imperial Tobacco Canada calls on the government to explain why these regulations were expedited and to reconsider the impact of this decision on both public health and the integrity of the regulatory process.

About Imperial Tobacco Canada
Imperial Tobacco Canada is Canada's leading tobacco and nicotine products company and is part of the world's most international tobacco group: BAT. At BAT, our purpose is to create A Better Tomorrow™ by Building a Smokeless World.

Our vision is for A Smokeless World built on smokeless products where, ultimately, cigarettes have become a thing of the past. A world where smokers have migrated from cigarettes to smokeless alternatives. A world where smokers make a Switch to Better.

SOURCE Imperial Tobacco Canada

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