Tobacco tax hike could lead to more counterfeit smokes, taxpayer federation says

From: National Post

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Proponents describe it as a “no-brainer.” Jacking up cigarette taxes reduces smoking, saves lives and boosts government revenues.

But while some advocacy groups, such as the Canadian Cancer Society, are applauding the federal government’s decision to boost tobacco taxes, others are warning of “unintended consequences” — an expansion in the illicit trade of contraband tobacco, which will make cigarettes more available to underage smokers and cut into tax revenues.

“As much as you want to prevent smoking … you have to be realistic about the situation,” said Candice Malcolm, Ontario director of the Canadian Taxpayers Federation. “It doesn’t seem like a very well thought-out plan.”

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