BACKGROUND-AIM:
The Canadian government’s annual budget for its national tobacco control strategy is C$66 million (US$46 million), including for communication campaigns, cessation and other programs, regulatory development, enforcement, research and surveillance, and international. There have been longstanding advocacy efforts to require tobacco companies to reimburse the Canadian Department of Health for this cost. The tobacco industry opposes such a requirement. In the US, a cost recovery fee has been in place since 2009 to recover the annual cost of the Food and Drug Administration’s tobacco control budget. In Canada, a national cost recovery fee was implemented on the cannabis industry following cannabis legalization in 2018. A cost recovery fee is not a tax and is different from government lawsuits for health care costs. The tobacco industry caused the tobacco epidemic and a cost recovery fee helps to hold tobacco companies accountable for government strategy costs to respond to the epidemic. The measure results in added government revenue. Opinion polls demonstrate overwhelming public support.

METHODS:
A multi-year advocacy campaign called for a tobacco control strategy cost recovery fee on tobacco manufacturers. This presentation will provide an overview of the campaign and the final regulatory measure adopted.

RESULTS:
In the 2021 Canadian national election, the three major national parties (Liberal, Conservative, New Democrats) included a cost recovery fee in their platforms. Following the 2021 federal election, legislation with regulatory authority was adopted by Parliament in June 2024 with a unanimous vote supported by all political parties and all Members of Parliament. The Tobacco Charges Regulations were adopted in March 2025. Tobacco companies are required to pay their first invoice based on market share by November 30, 2026. In phase 1, the regulations require tobacco companies to reimburse the Canadian Government for annual costs of the government’s tobacco control strategy dealing with tobacco products. At a future point, phase 2 will require vaping companies to reimburse government strategy costs regarding vaping products. Contraband enforcement costs for unpaid taxes are not being recovered.

CONCLUSIONS:
A fee to recover from the tobacco industry the annual cost of the government’s tobacco control strategy is an effective measure that could be implemented by national or subnational governments. The measure is publicly popular and generates revenue for government. Many countries should consider this measure.