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Contraband

llicit trade in tobacco is not a new phenomenon. Those who fail to learn the lessons of history are doomed to repeat them. Some 15 years ago, high taxes created a contraband crisis that cost governments billions of dollars in taxes, created a boon for organized crime and generated widespread societal problems. At the urging of the RCMP and other authorities, governments were forced to slash taxes to dampen the activities of an enormous black market. Today, taxes are at an even higher level in real terms than they were 15 years ago and police authorities report that contraband unprecedented levels.Law-abiding Canadians may feel that purchasing illicit tobacco products represents a relatively harmless way to rebel against unfair taxation and the government’s treatment of smokers. The reality is quite different. Consider the following:

Health

• Unlike legal products (the contents of which are monitored by Health Canada) there is no control over the contents of illegal products. They can contain anything from wood fibres to animal feces and other contaminants.
• Health groups and law enforcement authorities warn that illegal products are dangerous beyond the levels normally associated with smoking.

Organized Crime

• The black market is controlled by organized crime groups that use proceeds from illicit tobacco operations to fund drug and weapons smuggling and other activities.
• In addition to counterfeit products, illicit “Native” brands and other contraband, organized crime groups also stage robberies and hijackings in order to resell legally branded products.

Youth

• The black market makes cheap cigarettes easily available to minors at pocket-money prices. Laws don’t stop criminals from hanging around parks and school yards in order to ply their trade.
• Sales of illicit cigarettes to youth and the trafficking of drugs go hand in hand.
• Youth are often recruited to help distribute illicit tobacco products and drugs.

Penalties

• Possession of illegal tobacco products is a crime that is being punished with heavy fines and prison sentences.

Positions

• Record high taxes and an official policy of vilifying smokers and treating them as second-class citizens have allowed organized crime to create a massive market for illicit tobacco products.
• In combating the illegal trade, it is clear that governments need to appeal to smokers by treating them more fairly in terms of taxation and laws.
• The illicit tobacco trade is far from being a victimless crime. It is fraught with danger and negative consequences for smokers as well as for society in general.
• We believe in making smokers aware of the health and personal safety risks as well as other negative consequences. We encourage them to resist the temptation to purchase illicit products.
• Many of the problems associated with contraband, high taxation and distribution of tobacco products could be avoided or ameliorated if federal and provincial governments actively consulted with the consumers of tobacco products (as they might with consumers of any other legal product).

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