E-cigarettes are butting out revenue dollars from Manitoba’s tobacco tax.
The province has projected a 12 per cent decrease, an estimated $15 million loss, in tobacco tax revenue for the 2015-2016 fiscal year.
A decline in tobacco sales the province contributes to smoking reduction programs, e-cigarettes and the high tax itself.
"The tax is reducing consumption, which is desirable. We want less people smoking and we're dedicating special resources to help people cease smoking,” said Manitoba Premier Greg Selinger.
The battery-operated e-cigarettes are not subject to tobacco taxes and are used by some people as a nicotine-free alternative.
But others use them with nicotine cartridges, to get the same nicotine hit as a regular cigarette without the tobacco.
That province said it will not add a tobacco tax to e-cigarettes anytime soon.
The Manitoba Tobacco Reduction Alliance said the tobacco tax is an especially good deterrent for young people.
"Both teenagers in their later teens and (people in their) early twenties tend to be effected more by cost and price of things. So it does have an impact,” said Murray Gibson, executive director of MANTRA.
Gibson said the decline in overall tobacco sales is positive, but still cautions people using an electronic alternative with unknown long-term health effects.
The province said it has plans to address further regulations on e-cigarettes in the upcoming year.
- with files from The Canadian Press
