BRANTFORD - The trail of
contraband cigarettes often leads right to Ontario€™s Six Nations Indian
reservation, which has a robust trade of illegal tobacco, the Brantford
Expositor reports. "Yes, the contraband tobacco trade is alive and well on Six
Nations," said Gary Grant, spokesperson for the National Coalition Against
Contraband Tobacco.
With the law not requiring
taxes paid on cigarettes bought and used on the reserve, the area surrounding
the Six Nations has become a hotbed of illegal cigarette activity. While First
Nation sellers are not supposed to make sure the cigarettes are being smoked on
reserve land, "It's a convenient excuse to use if someone comes to load up a
big truck with cigarettes that are clearly not for the reserve," said Grant.
The Royal Canadian Mounted
Police know of around 50 illegal manufacturers on Canada€™s reserves, which
harms the Six Nation€™s Grand River Enterprises, which does things according to
the law. "Sure some [First Nation cigarette makers] pay their taxes but then
you have 50 more that are churning out millions of contraband cigarettes
without any regulation or government oversight," said Grant.
Grant estimates contraband
cigarettes cost the tax system around $2 billion, not to mention the
significant loss to legitimate retailers. The coalition wants the government
and First Nation representatives to work together to put illegal plants out of
business.
The National Coalition
Against Contraband Tobacco includes the Canadian Chamber of Commerce,
convenience store owners, tobacco manufacturers and Toronto Crime Stoppers. Communities
in Ontario are asking for help to stop the sale of contraband tobacco.