EAST KILDONAN, Manitoba –
The Canadian province of Manitoba announced last week that it would raise the
tax per cigarette to 29 cents, a four-penny hike, the Brandon Sun reports. That
increase would be effective immediately.
The hike adds an extra
buck to a pack of 25 cigarettes, and four cents per gram on leaf tobacco. The
Manitoba government predicts the increase will bump revenue up $17.2 million,
which will be funneled into health care programs.
Meanwhile, Saskatchewan is
raising its tax on cigarettes by four cents, while New Brunswick is increasing
its tax by two cents per cigarette.
The Western Convenience
Stores Association said its members were very concerned about the increases.
“Unfortunately, it appears the provincial government has taken one step forward
and two steps back with this tax increase,” said Andrew Klukas, president of
the association, in a press release. “The tax increase on tobacco will provide
more opportunity for contraband traffickers, ultimately hurting our small
businesses and threatening the safety of communities in Manitoba.
With increased taxation in
Saskatchewan, and now Manitoba, the West is a viable prospect for the illegal
market. “Certainly with this increase, traffickers will now be looking westward
as a possible market for their illegal product. It is extremely difficult for
our law-abiding retailers to compete amidst the thriving illegal industry,”
said Klukas.
“We are hopeful that this
increase in taxes will be accompanied by legislation to fight contraband
tobacco, be it through increased penalties or enforcement for those convicted
of contraband offences,” he said. “We do not want to see this illegal market
move westward or gain any further ground, as it has in other provinces.”