CANADA LOSING $2.1 BILLION IN TAX REVENUE SAYS KPMG REPORT

Rothmans, Benson & Hedges calls for federal leadership to address Canada's illicit market

TORONTO, April 23, 2026 /CNW/ - Rothmans, Benson & Hedges Inc.(RBH), an affiliate of Philip Morris International (PMI), today is emphasizing the need for federal leadership to coordinate a national approach to share best practices, private sector expertise, and lessons learned from provincial law enforcement agencies to address Canada's multi-billion dollar illicit market for contraband tobacco.

A new study, conducted by KPMG LLP and commissioned by PMI, found governments across Canada are leaving up to $2.1 billion CAD in uncollected tax revenue due to the widespread availably of contraband tobacco. The same study found contraband tobacco continues to grow as a proportion of all cigarette sales and now makes up over 38 per cent of the Canadian tobacco market.

Previous reports commissioned by the Convenience Industry Council of Canada (CICC) and conducted by Ernst & Young have found the contraband tobacco market varies widely from province to province and could be as high as one out of two cigarettes sold in Ontario and as low as 11 per cent in Quebec. This variation reflects Canada's patchwork of approaches to illicit trade, differing legal and regulatory tools across jurisdictions, and distinct approaches to enforcement.

Québec's ACCES Tabac is the gold standard in Canada for tackling this illicit market that funds organized criminal activity, including drug and gun trafficking. The province has a dedicated enforcement model, strong penalties, and greater inspection authorities for officials--tools that have made it a national leader in fighting back against this criminal enterprise. Other provinces, like Alberta and New Brunswick, are adopting some of these best practices to help reduce contraband in their own jurisdictions.

From housing to health care to the environment, Canada's federal government has recognized that leadership at the national level can produce better outcomes on issues impacting Canadians. Federal leadership on contraband could bring coordination and funding to amplify provincial initiatives and help share best practices across the country--while making real progress in reducing Canada's massive illegal market.

Contraband tobacco is not a victimless crime; it negatively impacts public health, hurts small business owners who follow the rules, and makes our communities less safe. Contraband is controlled by, and directly funds, organized crime--including gun and drug trafficking--while increasing the risk of youth access to cigarettes.

QUOTES

"Canada simply can't afford to ignore this multi-billion-dollar illicit market--that funds criminal activities bringing violence, drugs, and guns to communities from coast-to-coast-to-coast. By bringing together the federal government's leadership, private sector expertise, and the lessons and best practices from provinces on the front lines of enforcement, Canada can turn the corner on contraband. Through action, leadership, and by working together, we can hit the wallets of the criminal organizations profiting from this illicit market, improve public health, and help small businesses who follow the rules." – Milena Trentadue, Managing Director, Rothmans, Benson & Hedges Inc.

"The tax revenue governments lose each year from contraband could be used to support key national priorities, including improving our public health care system and criminal justice system, or helping fund our NATO commitment for national defence spending. Rothmans, Benson & Hedges is ready to partner with the federal government to help coordinate and lead a national response, based on best practices, so each province and territory has the appropriate tools, resources, and enforcement abilities to tackle the illicit market that is putting our communities at risk." – Danny Fournier, Senior Manager, Illicit Trade Prevention, Rothmans, Benson & Hedges Inc.

About Rothmans, Benson & Hedges:

Rothmans, Benson & Hedges Inc. (RBH), an affiliate of Philip Morris International Inc., is one of Canada's leading tobacco and nicotine companies and is working to deliver a smoke-free future. RBH is committed to sustainability and creating a positive impact on communities, the economy, and the environment. Currently, RBH employs nearly 800 people across the country, with its headquarters in Toronto and a factory in Québec City. Discover more about the company at https://www.rbhinc.ca/ and stay updated on RBH's transformation by following Twitter and LinkedIn.

SOURCE Rothmans, Benson & Hedges Inc.

Media Inquiries: Brayden Akers, Manager, Media Relations and Issues (Canada), [email protected]