Smoking and Money

A World Health Organization report in the mid-1990s says the tobacco industry worldwide makes $168 billion, more than the economies of 180 of the world's 205 countries.

In Canada, between 63 and 79 per cent of the price of a package of cigarettes is tax. In New York, by comparison, the tax on cigarettes is 38 per cent.

In Canada, the societal costs attributable to smoking for 1993 were approximately $11 billion, of which $3 billion was spent on direct health care costs such as hospitalization and physician time. The remaining $8 billion was due to lost productivity. In comparison, it is estimated that in 1993/94, revenue from taxes on cigarettes totalled $2.6 billion.

Second-hand smoke is also costly to businesses. The Conference Board of Canada (1997) found that the average cost associated with employing a smoker was $2,565 each year. This amount was a result of $230 for increased absenteeism, $2,175 for decreased productivity, $75 for increased life insurance premiums and $85 for cleaning and maintaining a smoking area.