Canadians can be pleased that the number of smokers in our country is declining, with fewer than one-quarter of people who admit to being smokers.

On the other hand, the rising sales of contraband tobacco is worthy of everyone’s concern. Tobacco products are illegal if they do not comply with Canadian regulations regarding taxation, health warning labels, product testing and reporting, importation, stamping, manufacturing and distribution. They are being smuggled into Canada and sold for as low as a dollar per package of 20 cigarettes – a fraction of the $8 a package for government-regulated product.

Many consumers choose this cheaper alternative, not realizing that they are breaking the law and may be paying with their health.

The Canadian Convenience Stores Association (CCSA) says approximately one-half of cigarettes consumed in Ontario in 2008 were contraband, and this is a problem that is spreading to other provinces, including Saskatchewan.

One-third of Canadians who purchase contraband tobacco buy it from a native reserve, and most of them do not realize the potential legal consequences of not paying tax on tobacco products.

The illegal sale of tobacco is detrimental to the economy and small businesses. As convenience stores cannot compete with the low prices of contraband tobacco, they are forced to lay off workers or close up shop.

While taxes from tobacco benefit Canadians and support government initiatives, profits from the sale of contraband tobacco are used to finance other illegal activities that might include drug and weapons trafficking, money-laundering, human smuggling and organized crime.

The CCSA reports the Government of Ontario alone loses $360 million in revenue each year due to the sale of illegal tobacco. The influx of massive amounts of inexpensive, easily accessible cigarettes has harmed the efforts of decades of successive Canadian governments trying to keep cigarettes away from our youth.
Educating the public about illegal contraband tobacco products and increased resources for law enforcement could discourage Canadians from buying them.

The CCSA notes that since 90 percent of these products are manufactured on the American side of the Akwesasne reserve and then smuggled across the border into Ontario, increased border security could assist in combating this problem.

Contraband tobacco poses a grave threat to our local economies and the health of our children and our public safety – we must take action against it.

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The audio version of Garry's August 24, 2009 op-ed column can be heard by clicking here