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flag JTI-Macdonald sued to block Canada’s 2026 tobacco fee, which would make companies pay for public health programs based on market share.

flag JTI-Macdonald Corp. has sued to block a new federal tobacco cost recovery fee set to take effect in November 2026, which would require tobacco companies to fund Canada’s tobacco control strategy based on market share. flag The $42.5 million fee, backed by all major political parties and approved unanimously in Parliament, aims to cover stop-smoking programs, public education, and enforcement, shifting costs from taxpayers to the industry. flag The company claims the fee is unconstitutional and uncapped, potentially benefiting illicit tobacco operators. flag Health advocates and the federal government support the fee as a fair application of the polluter-pay principle, noting tobacco-related health costs exceed $5 billion annually.

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