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.”