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Canadian Governments Seek Huge Sums from Tobacco Industry
October 28, 2009

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News Summary

Various liability claims by Canadian governments against tobacco companies could total nearly $200 billion, Bloomberg reported Oct. 21.

Provincial governments from British Columbia to Quebec and New Brunswick have either filed suit or plan to sue tobacco firms in hopes of recovering the costs of treating tobacco-related illnesses and tax revenues lost because of cigarette smuggling.

The healthcare-liability claims are similar to those pursued successfully in the U.S. during the 1990s; the smuggling claims arise from companies' allegedly excessive exports of Canadian cigarettes into the U.S., which provinces maintain was done with the knowledge that the cigarettes would later be smuggled back into Canada and sold on the black market.

COMMENTS ON THIS ARTICLE:

Posted by Ryan Haller on 29 Oct 09 11:40 AM EDT
I've been a smoker for over 20 years now, roughly a pack a day. I don't want to smoke but I'm addicted, simple as that. And in those 20 years, I've spent roughly 37, 000 dollars in taxes on those ciggarettes. I'm still healthy and will probably spend another 37, 000 dollars in taxes for my smoking. So when I die, (lets say from lung cancer)I've spent over 70, 000 dollars in taxes for my smoking....and the gov't want to sue the tabacco companies? Why then is the gov't in partnership with the tabacco companies?.... we truly do live in a crazy world. Oh and by the way....my teeth are in excellent condition!

Posted by Diane on 29 Oct 09 01:19 PM EDT
I agree with you, Ryan. You can't have it both ways. Either it is a legitimate source of revenue or it is a serious health risk needing to be eradicated. The government needs to choose.

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