
Canada’s contraband problem is about much more than lost revenue
A large market, along with relatively easy retail, low enforcement priority and outsized profit margins have made contraband cigarettes lucrative.
One of the measures of state failure is the relative size of the underground economy. So-called narco-states are rife with smuggled cigarettes, liquor, drugs and gasoline, and are a telltale sign that the institutions of government are not functioning as they should.
Inability to assert the right to tax is indicative of state failure or collapse. We commonly associate this phenomenon with select parts of the Balkans, Africa, the Middle East and Asia. But Canada?
Contraband tobacco is thought to incur global annual tax losses in the order of $40 billion-$50 billion (U.S.). Estimates range from 10.7 to 11.6 per cent of cigarettes consumed worldwide. Canada’s contraband cigarette problem is outsized and disproportionate by comparison: our illicit tobacco market is estimated at 15 to 33 per cent of all cigarettes consumed.
Related Posts
Study backs organised crime links to counterfeit medicines
Pills on a mapA study of counterfeits of a single medicine brand has found...
How Chennai YouTuber smuggled 267 kg of gold worth Rs 167 crore in just 2 months: Shocking details
Chennai-based YouTuber Sabir Ali, who operated a souvenir shop named AirHub at...
12 arrested, illicit liquor worth Rs 2.85L seized
The police arrested 12 persons in connection with smuggling of illicit liquor...
Gang smuggling gold ‘paste’ from Dubai busted; 1.23 kg recovered from 2 arrested
The Ludhiana police on Sunday busted an international gang smuggling gold from...



