Canada Cut Tobacco Taxes and Crushed the Black Market
August 26, 2026 by substack.com
Canada Cut Tobacco Taxes and Crushed the Black Market
Canada’s tobacco tax cut shows that illicit markets are not untouchable. Price matters, and extreme excise can stop working as public health policy once illegal cigarettes become the cheaper, easier option. Reducing the black market does not mean giving up on lower smoking rates; it means designing incentives that keep consumers inside legal, accountable channels. A serious strategy should combine realistic taxation, enforcement and access to safer nicotine alternatives.
10.60% of the adult population are current smokers. There are approximately 3.5 million current smokers in Canada 13.10% of men are current smokers but only 8.10% of women.
SOURCE: GSTHR
