Contraband tobacco hurts convenience stores

Re: Tobacco trade lights fire in Mohawk economy (Extra, April 13)

The article highlighted the significant role that contraband tobacco plays in some First Nations communities.

But as much as the illegal tobacco trade may “light a fire” for some groups, it extinguishes small business owners who sell legal tobacco products, including Canada’s 23,000 convenience stores.

For years, the Canadian Convenience Store Association has been raising awareness about the significant consequences posed by contraband tobacco.

To be clear, we do not take issue with cigarettes that are sold onreserve. Our opposition to this trade is when these products are taken and sold off-reserve in communities across Canada.

Our retailers are hurt by lost revenue as they cannot compete with those selling a cheap alternative to their legal product.

Not only are there fewer profits for small business, there’s a loss in government revenue, as contraband cigarettes are sold without taxes. This results in billions of dollars in lost annual revenue for both the provincial and federal governments.

Contraband’s financial impacts are also matched by social consequences.

The RCMP estimates that over 70 organized crime groups are involved in the illegal tobacco trade, often leading to the trade of other illicit products including drugs and guns. As contraband tobacco is sold without age-verification, the probability of youth access to tobacco increases exponentially. The involvement of organized crime and the allure for youth poses a serious problem for community safety — both on and off reserves.

Contraband tobacco is a complex problem, and it cannot be solved overnight.

Ultimately all parties that are impacted by this trade must come to the table with the goal of developing a collaborative, long-term solution to this persistent problem.

Alex Scholten

President, Canadian Convenience

Stores Association

Fredericton, N.B.