Chapter 31 Tobacco exports, imports and smuggling

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Tobacco exports, imports and smuggling: Smuggling

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In 1994, five eastern provinces in Canada lowered cigarette taxes, dropping the price

from (Canadian) $47 a carton to $26 or less. The provinces in western Canada,

British Columbia, Alberta, Saskatchewan, and Manitoba, kept their taxes high, and a

carton still costs from $45 to $46. This results in smuggling and contraband sales; an

estimated 20% of cigarettes sold in British Columbia are contraband, resulting in a

tax revenue loss of up to $125 million each year.

Canadian Medical Association Journal, January 13, 1998, p. 97

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Monday, July 24, 2000

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