Contraband tobacco products found in a southeast Calgary storage facility in July 2021. (AGLC)

By Josh Hall

Alberta

Contraband tobacco crime discussed at Alberta Chambers AGM in Red Deer, ahead of World No Tobacco Day

May 29, 2024 | 5:28 PM

Tobacco was a hot topic this week at the Alberta Chambers of Commerce annual general meeting in Red Deer.

Rothmans, Benson & Hedges Inc. (RBH), along with the National Coalition Against Contraband Tobacco, and the Convenience Industry Council of Canada (CICC), warned business leaders and government officials about the contraband tobacco market, one that is growing and impacting public safety, as well as government finances, they say.

Notably, the warning comes ahead of World No Tobacco Day on May 31.

According to RBH, Alberta has seized over 35 million contraband cigarettes in just the last nine months. That includes over 32.2 million contraband cigarettes worth over $25 million in just the first 4.5 months of 2024.

That represents lost provincial tax revenue of $9.38 million, Alberta Gaming Liquor and Cannabis (AGLC) shared earlier this month.

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A study done by Ernst and Young, commissioned by the CICC, estimates up to 45 per cent of cigarettes sold in B.C. are contraband, with nearly 50 per cent sold by organized crime in Ontario.

“Alberta’s recent seizures of over 35 million contraband cigarettes proves the threat to public safety and finances is a real issue impacting small business owners and communities across the province,” says Ron Bell, illicit trade prevention, RBH.

“We know contraband is controlled directly by gangs and other criminal organizations, and often when contraband tobacco is seized, illegal drugs including cocaine and fentanyl are also found. Federal leadership, coordination and resources are needed to put an end to this organized criminal activity that’s linked to gun and drug trafficking, and potentially putting cigarettes in the hands of youth.”

Despite the high numbers of contraband, the study indicates that as of April 1, 2023, Alberta had the third-lowest price for an average pack of cigarettes, among the provinces and territories. Alberta also had, as of the same date, the fourth-lowest prov./terr. excise tax, at $55/carton of 200. That’s behind only Ontario ($36.95), Quebec ($37.80) and New Brunswick ($51.04).

RBH adds that contraband tobacco is not a victimless crime as it hurts small business owners who follow the rules.

The organization points out that in recent months, governments in Alberta, Saskatchewan and Ontario have each taken steps to address the issue.

Alberta announced a new working group to tackle contraband tobacco in Budget 2024, Saskatchewan recently passed Bill 29, known as the Tobacco Tax Amendment Act, and includes new enforcement measures, while Ontario’s recent budget took action to increase penalties for criminals caught selling contraband.

RBH, an affiliate of Philip Morris International Inc., a leading tobacco and nicotine company in Canada, points out it is working to deliver a smoke-free future.

On its website, RBH points to technology as the key to putting an end to cigarettes, with more than $9 billion USD invested since 2008 into research and development of a new range of smoke-free alternatives.

The website also mentions that it believes in a future where “no smoking” signs can be a relic of the past.

As noted, the World Health Organization (WHO) initiative that is World No Tobacco Day is this Friday, May 31.

Alberta Health Services says it is partnering with youth, youth coalitions, parents and other youth allies (such as teachers) to spread awareness about the harms of commercial tobacco and other nicotine-containing products. Their work also includes prevention of vaping.

Toolkits for various grades:

• Grades K-3: Be Tobacco Smart booklet about tobacco litter, and harm on health and the environment.
• Grades 4-6: The Academy for Tobacco Prevention online game to promote engaged thinkers and ethical citizens on tobacco prevention.
• Grades 7-9: GeminAI Rising online game for problem-solving, decision-making, critical thinking, self-concept and coping skills for young people, and Behind the Haze.ca for vaping questions and facts.

AHS says that if you are a parent or caregiver concerned about your teen’s use of commercial tobacco products:

• Behind the Haze.ca has answers to common vaping questions and facts.
• Look for youth coalitions across the province who work on peer education and advocacy projects to raise awareness around tobacco and other nicotine-containing products.
• Visit Community Education Service for upcoming webinars on vaping and youth.
• Get involved in community-wide interventions to increase awareness about and provide opportunities to reduce tobacco use in your community.
• Talk to your teen’s healthcare provider or pharmacist for support and recommendations.
• Call the Addiction Helpline, 1-866-332-2322, available 24/7, or Health Link at 811.
• If you’re concerned about nicotine poisoning, call 1-800-332-1414 to reach the Poison & Drug Information Service (PADIS). In an emergency, call 911.