Fraser Valley/Toronto – When one thinks of organized crime, illegal drugs and weapons are usually first to come to mind.
Bootleg alcohol seems to be relegated to the long lost days of “The Godfather” and the 1920’s, 30’s and 40’s.
Illegal tobacco is a reality and an ever growing problem.
In conversation with FVN’s Don Lehn, Eric Gagnon, Vice President of Legal and External Affairs – Imperial Tobacco Canada, spoke about a number of related issues including: new research by Abacus showing 34 percent of all cigarette sales in B.C. are purchased illegally. This is a growing concern and the reality is the illicit sales have a direct impact on legal retailers and tax revenues.
Similar to Gagnon’s home base in Southern Ontario, there are a number of border entry points that are of note where smokes can be brought in over the line. There is also a financial cost to the coffers and general revenue for Federal and Provincial Governments.
The Ontario and Quebec Provincial Police and BC RCMP have been trying to tackle the issue. Political will seems to be lacking and Gagnon addresses that.
He knows full well that the tobacco industry is always in the crossfire. From health reason to the drop off in sales vis a vis vaping products to advertising restrictions that dampers sponsorships. Note the old Vancouver Indy Races that were sponsored in part by Du Maurier ( a product from Imperial Tobacco).
He also debunks the theory that First Nation Reserves are part of the problem.
Gagnon noted other reasons for raising the red flag:
- It’s becoming easier for youth to purchase illegal tobacco in B.C.
- Since 2006, over $30 billion of tax revenue has been diverted from federal and provincial governments and into the hands of many of Canada’s most dangerous organized crime groups as they profit from this illicit trade’s expansion
- A carton of cigarettes sold by law-abiding retailers in B.C. goes for about $180 while the contraband carton sells for an average $45 – close to 75% less
