From: The Province
Tax loss estimated at $120 million per year for B.C.
By Sam Cooper
B.C. is getting smoked for tax losses of about $120 million per year because so many people use illegal tobacco.
An industry study, commissioned by the Western Convenience Store Association, said public safety is also an issue, because youth are disproportionately attracted to contraband smokes, which are about 50 per cent cheaper than legal cigarettes.
Association president Andrew Klukas said tax revenue estimates from government officials and study findings indicate that about $120 million in revenue is lost annually in B.C. because of contraband tobacco.
“The illegal cigarettes are sold without proper taxation … the rock-bottom pricing is appealing to young people,” Klukas said.
“As retailers we do age testing and we do a good job, but contraband sellers are doing business out the back of a truck, and they don’t check ages, so it is unfair and unsafe.”
