Heart and Stroke foundation praises vape tax, some say it could grow illegal market

Heart and Stroke Ontario is praising the Ontario government for implementing a new tax on vaping, saying they have been advocating for the measure for years.

The province said in its fall economic statement that the federal tax on vaping products will double with the additional revenue going to the province of Ontario.

Lesley James, Director of Health Policy and Systems for Heart and Stroke Ontario, said they have seen this type of tax help reduce the rates of vape use amongst young Ontarians.

“We’ve seen about a hundred jurisdictions around the world introduce a vape tax to date and the preliminary results from these jurisdictions are similar to what we saw with tobacco, that rates go down after taxes are implemented and youth are among the most price sensitive,” said James. “So because they have less disposable income, they feel the impact of a price increase that much more, and they’re more likely to be discouraged to use these products.”

Statistics from Heart and Stroke Ontario said that rates of vape use have increased for youth in Grades 7 to 9 in Ontario since 2019, but have decreased for youth between Grades 10 to 12. Across Canada, rates have reduced in both age groups.

They also found that vaping rates among young people in Ontario are almost four times higher than among adults 25 years of age and older.

“Most young people are buying vape products from legal retail spaces, so from brick and mortar or online sales, and the products that are sold through those retail environments typically meet the Health Canada standards that are put in place.”

When asked about how some considered vaping a healthier alternative to tobacco, James said the long-term consequences of vaping won’t be understood for years.

“We’re seeing some preliminary evidence showing respiratory conditions, seeing inflammation, increased blood pressure and these are precursors that will lead to long-term diseases like cardiovascular disease, stroke and heart attacks.

James said they are also seeing a link between vaping and mental health conditions.

“Especially among young people who are facing anxiety or depression and coming out of the pandemic, we want to make sure that people are addressing these issues head-on rather than self-medicating through vape devices.”

Anne Kothawala, President and CEO of the Convivence Industry Council of Ontario, said they believe this tax will grow the illegal market.

“We’ve seen that successive tax increases when we look at tobacco and we look at how much the illegal market has grown. It’s largely due to successive tax increases by governments. So it really doesn’t deal with the public policy objective, which is to reduce smoking rates,” said Kothawala.

“Tax increases, they particularly hit our industry quite hard in terms of the convenience industry because 48 cents on every dollar a convenience store makes goes for taxes.”

James disagrees, saying this narrative is often pushed by retailers in which the tax will affect their bottom line.

“We call this the scream test. So the louder opposition groups scream about a policy intervention, we know that it’s likely to work. So if they are decrying that this will elicit a black market it’s unlikely to do so, they’re just fearful that it will impact their bottom line.

“As convenience stores, we have an exceptional track record of selling age-restricted products. We pride ourselves on being responsible retailers. We have programs to ensure that our staff are well trained. So we absolutely agree with the government that we don’t want youth smoking or vaping,” said Kothawala.

Kothawala added they are hoping the government will do something about the online market, including looking at the payment providers on those platforms.

“If you go to purchase something, whether it’s contraband tobacco or contraband vape that’s untaxed and illegal, you have to use some method of payment. So if those methods of payments are basically shut down and not permitted for those bad actors to use, that would go a long way to eventually shutting down these illegal websites.”

James would also like to see the province do more to make vaping less appealing to youth.

“These products are highly appealing and enticing to young people. There are flavours like unicorn puke and cherry blast and cotton candy burst,” said James. “We’re hoping the federal government puts forth a comprehensive ban on vape flavours to protect Canadians from coast to coast.”

Currently in Ontario, the sale of flavoured vape products is restricted to specialty vape and cannabis retail stores, which only serves customers 19 and older.