Because of substantial smuggling during the early 1990s, tobacco taxes were cut in 1994 by both federal and 5 out of 10 provincial governments. This eliminated the majority of illicit channels for Canadian made cigarettes being smuggled back to Canada, but also lowered the price of cigarettes and contributed to recent increases in tobacco consumption. Since the 1980s, the federal Tobacco Diversification Program has been operating to help former tobacco farmers adjust to alternate economic activities. Smoking is restricted on trains and ships. Many provinces restrict smoking in Government buildings and elsewhere.
Many municipalities restrict smoking in areas under their jurisdiction.
A similar amount was raised by a special 3 year surtax on tobacco company profits. Canada enjoys a unique collaborative effort among the federal and provincial governments, as well as the voluntary sector, in tobacco control. Most Canadian children receive some health education about the hazards of tobacco use.