How big is the problem?

Illegal cigarettes count for more than 40% of all cigarettes sold in Quebec, and nearly 50% of those in Ontario. Illegal factories on Indian reserves are now the largest cigarette companies in Canada.

Isn't buying illegal cigarettes a victimless crime?

Not at all. Organized crime controls the trade, and they target high schoolers who can't buy cigarettes from law-abiding corner stores. The tax-free illegal cigarettes also deprive the government of hundreds of millions of dollars a year in tax revenues needed for essential services like hospitals and schools. And the unfair competition has hit corner stores hard, seriously reducing their customer traffic and resulting in lost jobs and even stores going out of business.

Targeting kids

Cigarette smugglers don't just target adult smokers looking to avoid taxes. They specifically target kids who know they can't buy cigarettes at a corner store. A study of cigarette butts found at high schools shows that 30% were illegal cigarettes.

No health warnings

Canadian law requires that health warnings cover 50% of a cigarette package, and corner stores can't even display cigarettes on shelves. By contrast, illegal cigarettes do not have any health warnings, and their ingredients are not inspected.

No taxes paid

Illegal cigarette smugglers don't pay any taxes, which is why their product is so cheap. But with so many illegal cigarettes on the market, it's having a serious impact on provincial budgets.

The government of Ontario estimates that $500 million a year is lost because illegal cigarettes aren’t taxed. According to the RCMP, all levels of government combined lose $2.4 billion a year.

Boosting organized crime

According to the RCMP, there are 105 different criminal organizations involved with the manufacture and distribution of illegal cigarettes -- and many of them use violence as a business practice. The Mackenzie Institute, a national security think tank, reports that even foreign terrorist groups are involved, to raise funds.

Bad influence on Indian reserves

According to the RCMP, illegal cigarette smuggling "involves organized crime networks exploiting aboriginal communities". They have turned Indian reserves into havens for their illegal activity. While a handful of criminals profit, the rest of the community suffers, including Aboriginal youth who have a disproportionately high rate of smoking.