Average of 1 in 3 Cigarettes Sold in Ontario are Contraband

Illicit Monitor - Ontario (CNW Group/National Coalition Against Contraband Tobacco (NCACT))

Illegal Cigarette Rates In Ontario as High as 59%

OTTAWA, Jan. 23, 2017 /CNW/ - Today, the National Coalition Against Contraband Tobacco (NCACT) released results of a study highlighting 32% of cigarettes purchased in Ontario were illegal.

"Ontario has the worst contraband tobacco problem in Canada- about 1 in 3 of all cigarettes purchased in the province are illegal," said Gary Grant, a 39-year veteran of the Toronto Police Service and national spokesperson for the NCACT. "This rate has remained constant for a number of years, and, as we approach budget season, is a reminder that the provincial and federal governments must take real action to address the problem."

Contraband was highest in Northern and Ottawa/Eastern Ontario, where illegal cigarettes represented 51% and 36% of all cigarettes purchased. About 1 in 4 cigarettes in the GTA and 29% in Southern Ontario were illegal. The survey of 1500 adult smokers in Ontario was conducted by GFK over a 12 week period ending on December 10^th, 2016. Respondents were asked through a continuous online tracking study about their cigarette purchases over the past 7 days.

"There is no reason to accept high contraband tobacco rates as a given. Clearly, this is a problem that will not go away on its own. It is also clear that meaningful anti-contraband tobacco measures can reduce illegal cigarette incidence. Quebec is a good example of this," continued Grant. "Quebec's Bill 59 and Acces Tabac program, which increased powers to local law enforcement agencies and provided them with the resources they need to investigate illegal tobacco, reduced contraband levels by about 50%. This means more money in the provincial treasury and less in the pockets of organized crime."

The RCMP estimates that there are about 175 organized crime groups involved in the illegal cigarette trade. They use the profits from cigarette smuggling to finance their other illegal activities, including guns, drugs and human smuggling. The contraband tobacco trade is fueled by 50 illegal cigarette factories, based mostly in Ontario and Quebec, each of which can produce as many as 10,000 cigarettes a minute.

"The ongoing strength of the contraband market in Ontario is a reminder that governments should be cautious about how illegal cigarette manufacturers will benefit from the introduction of the plain packaging regulations currently being considered by the federal government," concluded Grant. "Any such changes to the legal market should be preceded by effective anti-contraband tobacco measures, including increased enforcement and regulation of cigarette manufacturing materials like acetate tow. Taking contraband tobacco off our streets makes cigarettes harder to get and hurts organized crime."

About NCACT
The National Coalition Against Contraband Tobacco is a Canadian advocacy group formed with the participation of businesses, organizations and individuals concerned about the growing danger of contraband cigarettes. NCACT members share the goals of working together to educate people and urge government to take quick action to stop this growing threat.

The members of the NCACT are: Association des détaillants en alimentation du Québec (ADA), Association des marchands dépanneurs et épiciers du Québec (AMDEQ), Canadian Chamber of Commerce, Canadian Convenience Stores Association (CCSA), Canadian Manufacturers and Exporters, Canadian Taxpayers Federation, Canadian Tobacco Manufacturers Council, Conseil du patronat du Québec (CPQ), Customs and Immigration Union, Échec au crime Québec, Fédération des chambres de commerce du Québec (FCCQ), Frontier Duty Free Association (FDFA), National Convenience Stores Distributors Association (NACDA), Ontario Chamber of Commerce, Retail Council of Canada, Toronto Crime Stoppers, United Korean Commerce and Industry Association (UKCIA), and National Capital Area Crime Stoppers.

SOURCE National Coalition Against Contraband Tobacco (NCACT)

Michael Powell, (p) 1-866-950-5551, (m) 613-797-7313, (e) [email protected].