Imperial Tobacco Canada has stepped forward in light of the tax-hikes on tobacco products to suggest stopping tax increases on nicotine products and allowing the price to remain "fair".
As the future of big tobacco is leaning toward tobacco heating and e-liquid based products, it is in their best interest to keep nicotine products priced a low as competitively possible.
The reason behind this sudden push isn't just because of their business-stake in the electronic cigarette industry but also because, at the time of this article, over 25 percent of cigarettes sold in Canada are via the black market.
This amount equates to billions of dollars lost to both the industry and the government by way of taxation. According to Jorge Araya, "about 70 percent of the price of a pack of cigarettes is taxes."
While Imperial Tobacco is in support of Bill S-5 due to it officially legalizing e-cigarettes and vape products, which gives them stable ground to plan ahead, the current manufacturers and stores offering vaping products will suffer as many devices and accessories will not meet the requirements set by Health Canada.
Vendors may have to increase product pricing to offset the decrease in sales due to the removal of many non-compliant products from shelves. The question now is, how will Bill S-5 and the amendments to the Tobacco Act affect the black market sale of e-cigarettes, e-liquid and other vaping products?