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News » 2010 » May » Canadian Tobacco Retailers Urge to Crack Down Illicit Tobacco

Canadian Tobacco Retailers Urge to Crack Down Illicit Tobacco


Counterfeit tobacco is such an easy thing to buy in several Canadian provinces that it constitutes currently nearly 50 percent of total cigarette market in Ontario, said the Canadian Association of Convenience Stores.

Illicit tobacco as well accounts for almost 40 percent of Quebec market and the black market is now targeting Alberta. This illegal activity is constantly growing to end up with $2.5-billion in revenues within the last couple of years, according to Peter Vedy, communications director for the Association.

The Convenience Stores Association, which includes over 23,000 businesses throughout the nation, also stated that adolescents have been the major targets for black market.

Vedy claimed that whereas the average price of a carton of 200 cigarettes is $82 Wilcox said that while a carton of 200 cigarettes goes for about $82 across Ontario - and will go up to $88 in July - illegal cigarettes are selling for as little as $15 per carton.

"The intention to tax tobacco out of reach of teenagers and reduce smoking rates is severely limited by contraband tobacco flooding Canada", said Carol Cornet, the senior manager of Quickie Store Chain. "Moreover, the networks used by tobacco smugglers can be as well used to traffic much more dangerous products, like drugs and weapon".

The Association of Convenience Stores recently carried out a study to track the illegal practice. They collected the butts found in the streets, sidewalks, schoolyards and other locations across Ottawa. After counting the butts, they found out that smuggled cigarettes constituted nearly 30 percent of all cigarette butts found near several local high schools.

In addition, butts of contraband cigarettes were even found in large amounts near Canadian Supreme Court and the Ministry of Finances.

Vedy and Cornet urged the federal legislature last Monday to put an end to "trivializing" the problem of smuggled tobacco and reach an agreement with all interested parties in order to decrease contraband tobacco to 10 percent or even less of all tobacco products sold in Canadian market.

Vedy stated that the major part of illicit tobacco is smuggled into Akwesasne Mohawk Territory, Canadian tribal reservation from the United States. Vic Toews, head of Canada Public Safety Ministry admitted in a statement that the government is aware that illegal production and sales of counterfeit cigarettes has a dramatic effect on the country's economy and public health.

He also stated that federal government is currently considering the regulations to crack down contraband tobacco products. Public Safety Minister said they continue to increase efforts to pass the problem of contraband tobacco products to the federal level in cooperation with provincial and territorial governments, communities and industry groups. Meanwhile, they had no reliable evidence to prove that the issue of smuggled tobacco is worsening.

According to the Canadian Cancer Society contraband tobacco is affordable to teenagers, and thus, hampers the progress in cutting smoking rates across the country. The statistics show that last year 18 percent of Canadian adults were smoking, and 14 percent of adolescents (15-19 years old) admitted to be smokers.