Contraband tobacco is a growing public safety problem in Alberta and the government should address it now
EDMONTON, AB, Feb. 21, 2023 /CNW/ - In response to the growing number of contraband seizures by law enforcement in Alberta, Alberta's Convenience Store retailers encourage the Government of Alberta to take action against illicit tobacco trafficking in the province.
Contraband puts consumer safety at risk. When consumers buy contraband tobacco, they have no idea how and where it is manufactured. There is no way to be sure about the quality of the product as you find with legal manufacturing and that presents added safety risk to consumers.
Contraband tobacco reduces revenue for business owners through legal sales. Lawful and legal convenience store owners should not have to compete with organized crime. Many small business owners are managing their businesses during this time of economic uncertainty. Illicit tobacco adds another complex layer to sustaining a small business in Alberta.
Further, contraband is a drain on provincial taxes and represents a major tax loss for our province. According to the Alberta Gaming, Liquor and Cannabis Commission (AGLC), in 2020-21, provincial revenue from tobacco taxes was approximately $755 million. Recovering the revenue lost due to contraband could mean adding money into important public services, for example: the healthcare system or other such services.
Lastly, the manufacturing and trafficking of contraband tobacco is tied to organized crime groups. Often, these groups are trafficking serious drugs and weapons in addition to contraband tobacco. They are also engaged in other dangerous criminal activities. In December 2022, $207K in illegal cigarettes were seized during a traffic stop by Edmonton Police (ESP). EPS officials are on record stating that "contraband tobacco is becoming a mainstay of organized crime in our city. Criminals eventually have to use city roadways to transport their illegal cargo, and that's where [police and criminals] occasionally cross paths."
Public Safety, the loss of tax revenue, the negative impact on convenience store operators, and the criminal activity associated with illicit tobacco trafficking are all reasons why Alberta's government should take more action to enforce stronger penalties and enforcement to address this growing problem.
The Alberta Retailers Coalition (ARC) is an advocacy group with a mission to educate and raise awareness about the rapidly growing problem of contraband tobacco in Alberta.
For more information: https://www.albertaretailerscoalition.ca/
SOURCE Alberta Retailers Coalition
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