Budget 2024: Liberals look to offset drug plan cost with higher smoking, vaping taxes
Global News
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.
The Liberals expect a new bid to curb smoking rates in the federal budget will generate $1.7 billion in new revenue for the government.
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.
Both programs were billed as new health measures in the budget tabled in the House of Commons by Finance Minister Chrystia Freeland on Tuesday.
Health Minister Mark Holland announced the launch of a new pharmacare program in February, following fraught negotiations with the New Democrats.
The NDP pushed for 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.
The new costs will be entirely offset by renewed efforts laid out in the budget to discourage people from smoking and vaping.
