NEWS: News Release
July 30, 2007
McGuinty Government Introduces Tax Break On Smoking Cessation
Nicotine Replacement Therapy Now
More Affordable
TORONTO – The McGuinty government is introducing a Retail Sales Tax (RST) exemption on tobacco cessation aids, Health Promotion Minister Jim Watson announced today.
Starting on August 13, 2007, nicotine replacement therapy products including nicotine patches, gum, lozenges, inhalers, sprays and tablets will be exempt from RST at point-of-sale. The RST exemption on the qualifying tobacco cessation products is expected to provide approximately $5 million in savings to Ontario consumers in a full year.
“Helping Ontarians quit smoking is a major aspect of the Smoke-Free Ontario Strategy,” said Health Promotion Minister Jim Watson. “These savings will assist a mother, father or one of your loved ones when they make the decision to quit smoking.”
As an example, if an Ontarian who wants to quit smoking and uses the patch, the cost is an estimated $300 over 10 weeks. With this announcement today, an Ontarian can now save $24 while attempting to kick this habit.
“We’re proud of the tremendous success of the Smoke-Free Ontario Strategy in reducing the number of smokers in Ontario, and this exemption helps continue that momentum,” Finance Minister Greg Sorbara said. “In addition to the detrimental heath risks, smoking puts an enormous financial strain on the health care system. We encourage and support Ontarians who are choosing healthier lifestyles.”
“By supporting the creation of several integrated services where smokers can get help to quit, the government continues to expand the variety and types of programs and services that appeals to smokers across Ontario,” said Dr. Peter Selby, Clinical Director of Addiction Programs at the Centre for Addiction and Mental Health (CAMH), and Principal Investigator of the highly successful Smoking Treatment for Ontario Patients (STOP) Study.
Since 2003, the McGuinty government’s annual investment in the Smoke-Free Ontario Strategy has increased six-fold to $60 million, including:
• Support for pilot programs that offer tobacco cessation services at hospitals, community health centres and Aboriginal health access centres, and through registered nurses.
• The provincially funded STOP (Smoking Treatment for Ontario Patients) Study has reached approximately 31,000 smokers to help increase their odds of quitting, by providing counselling and free nicotine replacement therapy (NRT).
• We’ve expanded Smokers’ Helpline, an effective tool for smokers seeking encouragement and counseling to help them quit, with support now available after-hours and online.
Information on qualifying nicotine replacement therapy products can be found on the Ministry of Revenue website at www.rev.gov.on.ca
Smoking kills an average of 16,000 people in Ontario each year. Tobacco-related diseases cost the Ontario health care system approximately $1.6 billion a year, accounting for at least 500,000 hospital days each year, and resulting in more than $4.4 billion in productivity losses.
For more information on the Smoke-Free Ontario Act please visit www.mhp.gov.on.ca.
-30-
For further information:
Adam Grachnik
Minister’s Office
416-326-8497
Greg Flood
Ministry of Health Promotion
416-326-4806
Scott Blodgett
Ministry of Finance
(416) 325-0324
