New Brunswick Sends Mixed Messages About Contraband Cigarettes

While the Canadian province has cracked down on illegal smokes, it has also raised the tobacco tax.

March 18, 2016

FREDERICTON, New Brunswick – Convenience stores are receiving mixed signals related to tobacco, with the government increasing cigarette taxes while going after illegal cigarettes, CBC News reports. The Atlantic Convenience Stores Association said that contraband cigarettes in New Brunswick hovers around 22%.

The National Coalition Against Contraband Tobacco (NCACT) achieved its goal last year of having the government fund a contraband enforcement unit to stem the tide of illegal cigarettes. But in February, the government budget included higher tobacco taxes, which will make contraband cigarettes even more attractive.

“It is a mixed message if you have an enforcement team that's going to crack down on contraband tobacco, and yet when you raise taxes, it will likely send more people to the black market,” said Gary Grant, a coalition spokesman.

“Things like continuously raising the taxes and continuing to restrict the product has the converse effect. It pushes people to want to support the underground economy—the contraband product,” said Jeff Green, who owns a convenience store. “In the convenience store industry, tobacco is a very important component of the overall retail opportunity.”

Earlier this month, the NCACT asked the National Conference on Tobacco or Health participants to focus their attention on the critical issue of contraband tobacco that continues to undermine tobacco control measures implemented by the government.

Advertisement
Advertisement
Advertisement