Ontario is a haven for illegal tobacco manufacturers and has become an international exporter of illegal cigarettes: KPMG report

Highlights

• Ontario has the second highest rate of illegal tobacco sales in the Americas
• One in three cigarettes sold in Ontario is illegal (31%)
• 12 percent of the illegal tobacco products sold in Mexico comes from Canada

MONTREAL, May 29, 2015 /CNW Telbec/ - As we approach World No Tobacco Day on May 31, a new KPMG study on illegal tobacco in the Americas sheds a new light on the theme chosen by the World Health Organization this year: Stop Illicit Trade of Tobacco Products.

"In Ontario the rate of illegal tobacco sales remains extremely high. The sale of illegal cigarettes in Ontario has not only continued to infiltrate communities across the country, but the criminals who produce these illegal products have expanded into new markets throughout the Americas," said Caroline Ferland, Vice President, Corporate and Regulatory Affairs, Imperial Tobacco Canada.

In a report released today, KPMG has found that Ontario has the second highest level of illegal tobacco sales in the Americas.  At 31 percent, Ontario is second only to Panama (60 percent) and at par with El Salvador.  With this in mind, Imperial Tobacco Canada calls on all governments to take a comprehensive approach to combat the manufacture and sale of illegal tobacco. The KPMG report also finds that 12 percent of the illegal tobacco products sold in Mexico come from illegal factories in Canada.

"Ontario has made promises to put in place enforcement measures over the years," said Ms. Ferland. "The latest Ontario budget contained interesting proposals but promises are not enough and implementation must happen quickly. We hope Ontario will take notice and deliver on its commitments."

The impact of illegal tobacco may not be felt as immediately and directly as other crimes, but the consequences are very real. By some estimates, illegal tobacco costs Canadian governments 2 billion dollars each year in unpaid tobacco taxes. The RCMP reports that sales of illegal tobacco fund human trafficking, drug and arms trades as well as terrorist organizations.

SOURCE Imperial Tobacco Canada

Sebastien Dolan, 514-932-6161, Ext. 2222; Marie-Emmanuelle Khoury/Lauriane Ayivi, 514-288-8290 (Ext. 214/233), [email protected]/[email protected]