Ontario’s Billion Dollar Illegal Tobacco Problem

The National Coalition Against Contraband Tobacco asks for help to reduce the number of illegal cigarettes.

June 03, 2016

TORONTO, Ontario – Yesterday was the World Health Organization’s World No Tobacco Day, something particularly relevant to Ontario given the province's massive contraband tobacco problem, where illegal cigarettes account for one in three cigarettes purchased over the past year.

“Baggies filled with illegal cigarettes contain little or no warnings. If young people are not asked to show identification when buying illicit products, it makes it impossible to control their access to tobacco,” said Gary Grant, spokesperson for the National Coalition Against Contraband Tobacco (NCACT) and a 39-year veteran of the Toronto Police Service. “Society loses. Organized crime wins.”

Just two months ago, the biggest illegal tobacco bust in North American history took place in Canada and involved more than 700 police officers. This bust, known as Operation Mygale, resulted in the arrests of more than 60 people and included the seizure of close to 53,000 kilograms of tobacco. According to law enforcement groups, over the past 18 months the criminals involved in this bust illegally imported into Canada close to 2,300 tons of processed tobacco, which represents a total production of 4 billion cigarettes. This bust also included the seizure 836 kilograms of cocaine and other drugs, making it one of the three largest seizures done in Canada in the past 25 years.

“The recent Operation Mygale bust shows that this is a problem that isn't getting better,” Grant said. “Given Ontario has the worst illegal cigarette problem in the country, we wanted to meet with policy advisors and MPPs from all parties to discuss what to do against this growing threat.”

Commitment to enforcement is essential in the fight against illegal tobacco, particularly given the estimated 175 organized criminal groups involved in its sale. With the Ontario budget’s recent tobacco tax increase, it is essential that the government allow new enforcement measures, like the new Contraband Tobacco Enforcement Team, to disrupt the illegal networks, leading to more effective contraband reduction.

The NCACT has found that an increase in the price differential between legal and illegal product will only make it easier for the organized criminal groups involved in the trade to profit and fund their other illegal activities. Large increases in taxes will drive consumers to seek less expensive alternatives, which is counter-productive to the province's contraband enforcement commitment.

Advertisement
Advertisement
Advertisement