Health groups call on N.B. gov't to boost cigarette prices, already lowest in Atlantic Canada

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By Mary Moszynski
Times & Transcript Staff

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FREDERICTON - Anti-smoking groups are calling on the provincial government to review cigarette prices.

New Brunswick has the lowest provincial cigarette tax in Atlantic Canada, an unfortunate distinction that needs to change in order to encourage more people to quit smoking, according to several health organizations.

But even though Nova Scotia just hiked its tobacco tax by five cents per cigarette, a spokesman for the provincial government said the Liberals don't have any plans to increase taxes here.

"We need to look at price. The plain truth is New Brunswick has now, in Atlantic Canada, the cheapest cigarettes," said Ellen Snider of the provincial branch of the Canadian Cancer Society. "It's estimated that when you increase tobacco prices by taxation by about 10 per cent, you get a corresponding decrease in smoking rates of four per cent."

The smoking rates for New Brunswick have dropped from 26 per cent in 1999 to roughly 19 per cent.

"We know from experience across the country that that's exactly the case -- when the taxes go up, the smoking rates go down and guess what happens with the cancer rates," said Snider.

New Brunswick's provincial tobacco tax is 11.75 cents per cigarette.

Nova Scotia's increase of five cents brings its tax to 21.5 cents per cigarette and is expected generate an additional $21.9 million for that government this year. Prince Edward Island's tax is 22.45 cents per cigarette and Newfoundland's tax is 18 cents per cigarette.

A review of cigarette prices across Canada suggests New Brunswick has the third-lowest prices in the country. According to the national not-for-profit group Non-Smokers' Rights Association, a carton of 200 cigarettes in New Brunswick costs $78.81, while a carton in Quebec costs $70.18 and $74.49 in Ontario.

The same carton would cost $100.89 in Nova Scotia, $95.70 in Prince Edward Island and $92.93 in Newfoundland. The cost in Manitoba is $93.23, compared to $92.65 in Nunavut, $104.83 in the Northwest Territories, $91.12 in Saskatchewan, $90.55 in Alberta, $87.40 in British Columbia and $92.65 in Yukon.

The federal excise duty is $17 per carton.

Julie McKeen, director of health initiatives with the New Brunswick Lung Association, said the price of cigarettes should be reviewed on a regular basis.

Tax on cigarettes should be increased "for the purpose of decreasing tobacco use only if a significant portion of resulting revenues are allocated to sustainable tobacco prevention and cessation programs," she said.

Legislation, as well as public awareness programs, can change behaviours and reduce the number of smokers, she added.

"Public policies tend to have a more universal application and can be more permanent in nature."

But Marc Belliveau, spokesman for the Department of Finance, said New Brunswick's position of bordering Quebec and Maine makes it difficult for the province to raise taxes significantly as it could result in an increase in contraband cigarettes.

"We have to keep our taxes competitive with Quebec, and we're competitive with them on taxes, but if we go higher than Quebec, the big problem that will happen there is there will be a big influx of cigarettes coming in from Quebec, both black market and people that can legally buy cigarettes," he said. "It's a huge, huge issue. It's something that we continually monitor."

Increased smuggling means cigarettes are more likely to be sold to minors, Belliveau added.

The provincial government has already taken a number of steps to reduce smoking, such as banning smoking in cars with children, restricting the sale of flavoured cigarillos, and requiring store owners to keep their cigarettes out of sight, he said.

"There's that balance of public knowledge and of protection of the consumer, and at the same time not pricing yourself out of the market to increase smuggling activity."