Editor’s Note: The following is presented in keeping with CRE’s commitment to ensuring that all responsible viewpoints on tobacco governance issues are fully ventilated. See also Decolonizing cannabis: can legalization set Indigenous communities free? and A Mohawk Perspective on the Cross-Border Movement of Tobacco: “We didn’t put that border here”.
From: Institute for Research on Public Policy
Legalization could prove to be a key moment for First Nations that have been seeking to tax and regulate not just cannabis, but also tobacco.
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The provincial and federal governments could also hit two birds with one stone if they come up with a comprehensive system for regulating both cannabis and tobacco sales in Ontario on-reserve. The upcoming legalization of cannabis, then, could be an important catalyst in the recognition of our inherent right to self-government and a true nation-to-nation relationship.
Tobacco products sold on-reserve in Ontario today remain untaxed and largely unregulated. Brand name tobacco products are legally sold tax-free on-reserve to persons with Indian status. Meanwhile, Indigenous-owned tobacco growing operations and distribution systems have sprung up, but their products are considered contraband by the government and the operators are punishable under the Criminal Code. This is despite the fact that growing tobacco is an important part of our culture. With both types of tobacco, brand name and Indigenous-grown, $1 billion in potential taxes is going uncollected by either provincial or Indigenous governments.
