By causing steep losses in tobacco taxes, illicit tobacco is devastating businesses and communities. Photo credit: Marco Verch, Creative Commons 2.0.
The Convenience Retailers Alliance 4 Safe Communities, an advocacy group calling for action against contraband tobacco in British Columbia, Canada, is calling for the government to pay more attention to the effects illicit trade has on government revenue and businesses.
The Alliance pointed out Illicit trade robs British Columbians of millions of dollars in provincial tax revenue that could go directly to supporting health and social programs. The organization expressed its disappointment more investments were not made to improve community safety by preventing contraband tobacco in BC.
According to the Alliance, there was an annual tax loss of approximately CA$275 million for the BC government and a loss of approximately CA$126 million in tax revenue for the federal government in 2022 due to the illegal tobacco market.
There is also a significant decline when it comes to tobacco tax projections in 2023-24 for BC The tobacco tax revenue forecast has seen a steep decline from CA$644 million to CA$510 million., representing a decline of 21%.
In a statement, the Alliance said, “It's time for the government to recognize that these losses in provincial tax revenue due to contraband tobacco add up. It's time for the government to address the lack of enforcement when it comes to illicit trade that makes our communities unsafe and fuels organized crime. It's time BC has a comprehensive plan to address the serious illicit tobacco trafficking problem.”
BC retailers are also asking the provincial government to address the growing problem of contraband tobacco in BC
- Loss of sales: Every year, lawful and licensed convenience store owners lose out on millions in revenue due to the prevalence of illegal tobacco sales.
- Loss of tax revenue: Illicit trade robs British Columbians of millions of dollars in provincial tax revenue that supports BC social programs.
- Harming small businesses: Convenience store retailers in BC are suffering due to the inability to compete with organized crime groups.
- Stronger enforcement and policies needed: Better policies are required to stop contraband tobacco from further devastating convenience retailers and BC communities.
- BC's inaction: Other provinces have acted to address the issue of contraband tobacco. It is time the BC government act to protect consumers, stores owners, and the safety of communities.