5 Percent of Ontario Cigarette Market Being Handed to Organized Crime
From: The National Coalition Against Contraband Tobacco (NCACT)
Absent real action against contraband tobacco, new flavoured tobacco bans a windfall for criminals
OTTAWA, Nov. 24, 2014 /CNW/ – The National Coalition Against Contraband Tobacco (NCACT) is frustrated that the government of Ontario’s proposed ban on flavoured tobacco products, including menthol cigarettes, will further fuel the province’s booming trade in illegal tobacco.
“Just last week, Finance Minister Charles Sousa was trumpeting the need to take more action against contraband tobacco while introducing no new measures to do so. This week, they introduce legislation that will actually make the problem worse,” said Gary Grant, national spokesperson for the NCACT and a 39-year veteran of the Toronto Police Service. “Ontario is choosing to make contraband tobacco an even greater problem before they do anything to make it better.”
Today, the government of Ontario announced that it will be introducing legislation, the Making Healthy Choices Act, 2014 that will, among other things, include a ban on flavoured tobacco products, including menthol-flavoured cigarettes. A ban on menthol cigarettes had not previously been considered when similar legislation was introduced before the last provincial election.
Ontario has the worst contraband tobacco problem in Canada, with more than 30% of cigarettes purchased over the year being illegal. This level spiked to a shocking 42% in July. Contraband tobacco is a cash cow for organized crime, with 175 criminal gangs using it to fund their other illegal activities, including guns, drugs and human smuggling. It’s also a major drain on government revenues, with Ontario taxpayers losing about a billion dollars a year to the trade.
“The illegal market for menthol cigarettes is already booming. Banning legal menthol products, about 5% of the market, will only drive consumers to underground illegal channels,” continued Grant. “In fact, the illegal market already has about twice as many kinds of menthol products available for sale than the legal market. All sold at a fraction of the price of legal products and without any age verification.”
