TORONTO - As New Brunswick increases its province??s tobacco tax by $1.31 per pack ($10.50 per carton), the province??s finance minister is worried about a commensurate rise in contraband tobacco, the Toronto Globe & Mail reports.

The Globe & Mail noted, "Many governments have struggled to find the level of taxation that minimizes contraband while maximizing revenues ??"

New Brunswick Finance Minister Blaine Higgs therefore made an appeal to the public, essentially saying if one is going to smoke, to smoke lawfully traded cigarettes.

"I??m asking all citizens to do their part. If they??re going to smoke, we??d like for them to pay taxes legally," he said.

In response, convenience store owners characterized the minister??s attitude as naïve.

"I think that??s a pipe dream," said Chris Scholten, owner of four convenience stores in New Brunswick. "In today??s hard times, people will be hard-pressed to spend [an extra] $50 to do the right thing."

Sergeant Greg Lupson, RCMP spokesman for New Brunswick, said the cost of cigarettes definitely impacts the black market trade.

"As the prices change, people may be tempted to purchase contraband tobacco as either a cost savings or a form of protest," he said. "But they need to understand it??s an illegal activity."

Mike Hammoud, president of the Atlantic Convenience Stores Association, said that contraband cigarettes have typically passed through New Brunswick on the way to the more heavily taxed Maritime provinces. He expects that to change with New Brunswick??s tax increase.

"What we think is going to happen is they??re going to stop in New Brunswick and set up shop because they??re closer to the Quebec border," he said. "They are going to see more of the product and, unfortunately, what??s tied to the product. And I don??t think that??s what we want to have in communities across New Brunswick."

To learn more about contraband tobacco, be sure to attend the upcoming NACS Global Forum in Vancouver, June 19 to 21. Register today.