· Business (Tobacco)
non-USA, by Country
· Imperial (ca)
|Jump to full article: Canada Newswire (CNW) (ca), 2004-08-11|
Author: IMPERIAL TOBACCO CANADA
"High-tax policies by government have a cost. That cost is an increase in crime," said Imperial Tobacco Canada spokesperson, Christina Dona. "The demand for contraband tobacco products is affecting not only tobacco manufacturers, but wholesalers and retailers as well. We have experienced crime first hand." This is just the most recent in a string of illegal events that are evidence of the demand for contraband tobacco products. In April of this year there was a theft valued at $1.7 million of 5.8 million cigarettes in Ontario, and in January there was a truck hi-jacking in Langly, British Columbia of more than 11 million cigarettes worth a retail value of about $4.2 million.
As well, since August of last year, there have been four seizures of counterfeit products coming from China worth a total of $20.9 million in retail value, or about $14.8 million worth of federal and provincial taxes. . . .
Yesterday's theft is not only a loss to our company, but to the Alberta government's tax coffers. Pushing up the price of tobacco products with large tax increases only increases the demand for contraband cigarettes. Today, more than half a million contraband cigarettes will be available for sale, the province of Alberta will lose $285,000 in tax revenues, and the law-abiding retailers, wholesalers and manufacturers will also lose out.
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