BC Budget Will Help Fuel Organized Crime

VANCOUVER, BC, March 2, 2022 /CNW/ - The National Coalition Against Contraband Tobacco's (NCACT) responded to the tabling of British Columbia's Budget 2022 which included the application of provincial sales taxes on tobacco. If the budget is passed, this will represent an immediate 7% increase in cost of legal cigarettes in the province.

"Increased taxes on tobacco across Canada, without being paired with action against contraband tobacco, has been proven time and time again to push individuals to the illegal tobacco market," began Gary Grant, National Spokesperson for the NCACT.

An example of this is from the most recent federal budget, which introduced a 17% price increase on cigarette cartons. In response, the Parliamentary Budget Officer noted that the tax would not increase government revenue, but found that past tax increases on tobacco have contributed to the contraband tobacco market. This is caused by the price difference between legal and illegal cigarettes. Legal cartons will now sell for over $160 in BC, while a carton of illegal cigarettes sells for less than $60.  

"Other provinces have taken a prudent approach towards tobacco taxation, while at the same time investing in law enforcement measures to combat contraband tobacco. This has allowed them to increase tobacco tax revenues, while at the same time reducing organized crime activity," continued Grant.

In 2019, the Government of British Columbia reported seizing five million illegal cigarettes in one year, representing a potential tax loss of $1.4 million. Quebec has a similar sized contraband tobacco market as BC, and in the same year, reported disrupting over $200 million worth of illegal cigarettes through targeted law enforcement measures. Without action in BC, there is a chance that it could create a contraband tobacco market like Ontario, where 1 in 3 cigarettes are illegal and the government loses over $750 million a year in tobacco taxes.

"British Columbia is currently only addressing the tip of the iceberg when it comes to the contraband tobacco market operating in the province. Criminal gangs are able to act with near impunity without provincial action, and are making millions of dollars a day from the illicit trade which they use to fund other illicit activities, such as drugs, guns and human trafficking. With this tax increase, and no additional action against illegal cigarettes, organized crime will continue to flourish." concluded Grant.

The National Coalition Against Contraband Tobacco is a Canadian advocacy group formed by organizations and associations concerned about the growing danger of contraband cigarettes. NCACT members share the goals of working together to educate people and urge government to take quick action to stop this growing threat. More information about the Coalition can be found on our website, www.stopcontrabandtobacco.ca.

SOURCE National Coalition Against Contraband Tobacco (NCACT)

Media Contact: Kyle Larkin, NCACT Public Affairs, Telephone: [phone], Email: [email protected]