Budget 2024: Liberals look to offset drug plan cost with higher smoking, vaping taxes

Budget 2024 News

Budget 2024: Liberals look to offset drug plan cost with higher smoking, vaping taxes
2024 Federal BudgetBudget CanadaCanada Budget
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The increased cash flow coincides with the launch of a new $1.5-billion drug plan to offer universal coverage for contraceptive and diabetes medications.

That increased cash flow happens to coincide with the launch of a new $1.5-billion drug plan offering universal coverage for contraceptive and diabetes medications.

The NDP urged the government to cover several categories of drugs as the Liberals pushed back on the cost, citing a “challenging fiscal framework.”Holland was reticent to share the cost of the program at the time, and said the price tag was likely to change based on negotiations with provinces and territories.As it stands, the government plans to spend $59 million over the next year, and increase annual spending to $477 million by 2027.

“Enticed by appealing marketing, millennials and gen-Z are picking up new forms of old bad habits, vaping nearly as frequently as the baby boomers smoked cigarettes,” the budget document reads.The goal of Canada’s tobacco strategy is to lower the smoking rate to less than five per cent by 2035. Conservative health critic Stephen Ellis said the Liberals’ prescription drug program is “really about the preservation of the costly coalition” and their agreement to put off a federal election.

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