Illegal tobacco accounts for one-third of the Canadian industry, according to Blacklock’s Reporter. .“Illegal tobacco costs around $2 billion annually in lost tax revenue with that money diverted to some of Canada’s most notorious organized crime groups,” said Imperial Tobacco Canada CEO Ralf Wittenberg in a submission to the Senate Legal and Constitutional Affairs Committee. .“Despite this the federal government has barely mentioned illegal tobacco since 2015 let alone taken any measures to address it.”.Wittenberg said Canada’s illegal tobacco problem is a national issue spilling beyond the country’s borders, with product turning up in the United States, Mexico, the Caribbean, and Central America. He said after several years of relative stability, the black market is “growing again and by our own internal estimates is projected to consume approximately 32% of the market.”.The CEO went on to say this increase has been driven by illegal cigarettes making up 35% to 40% of the market in Ontario and the rate jumping to 35% in British Columbia. Numerous reports from police forces, think tanks, and media have drawn clear links between illegal tobacco and other criminal activities, such as drug and weapons trafficking. .An official estimate predicts 18% of Canadian adults are casual or daily smokers. Rates have remained almost unchanged since 2013..Wittenberg said Parliament should convene hearings on illegal tobacco. These hearings should examine the product, its ties to organized crime, and other criminal activity. .“Despite being arguably the most lucrative criminal enterprise in Canada today, illegal tobacco has been subject to only a brief study in 2008,” he said. .“If Parliament shows no interest in addressing this problem, why should the criminals involved fear any repercussions?”.Alberta police authorities made one of the largest seizures of illegal tobacco in the province’s history in 2021..READ MORE: Millions of illegal cigs up in smoke after Calgary seizure.“An investigation by Alberta Gaming, Liquor and Cannabis (AGLC) led to the seizure of an estimated $4.5 million of contraband tobacco,” said the AGLC. ."The total potential lost tax revenue is estimated to be more than $2.5 million."
Illegal tobacco accounts for one-third of the Canadian industry, according to Blacklock’s Reporter. .“Illegal tobacco costs around $2 billion annually in lost tax revenue with that money diverted to some of Canada’s most notorious organized crime groups,” said Imperial Tobacco Canada CEO Ralf Wittenberg in a submission to the Senate Legal and Constitutional Affairs Committee. .“Despite this the federal government has barely mentioned illegal tobacco since 2015 let alone taken any measures to address it.”.Wittenberg said Canada’s illegal tobacco problem is a national issue spilling beyond the country’s borders, with product turning up in the United States, Mexico, the Caribbean, and Central America. He said after several years of relative stability, the black market is “growing again and by our own internal estimates is projected to consume approximately 32% of the market.”.The CEO went on to say this increase has been driven by illegal cigarettes making up 35% to 40% of the market in Ontario and the rate jumping to 35% in British Columbia. Numerous reports from police forces, think tanks, and media have drawn clear links between illegal tobacco and other criminal activities, such as drug and weapons trafficking. .An official estimate predicts 18% of Canadian adults are casual or daily smokers. Rates have remained almost unchanged since 2013..Wittenberg said Parliament should convene hearings on illegal tobacco. These hearings should examine the product, its ties to organized crime, and other criminal activity. .“Despite being arguably the most lucrative criminal enterprise in Canada today, illegal tobacco has been subject to only a brief study in 2008,” he said. .“If Parliament shows no interest in addressing this problem, why should the criminals involved fear any repercussions?”.Alberta police authorities made one of the largest seizures of illegal tobacco in the province’s history in 2021..READ MORE: Millions of illegal cigs up in smoke after Calgary seizure.“An investigation by Alberta Gaming, Liquor and Cannabis (AGLC) led to the seizure of an estimated $4.5 million of contraband tobacco,” said the AGLC. ."The total potential lost tax revenue is estimated to be more than $2.5 million."
