Criminal Organizations Thrive on Contraband Tobacco Sales
Criminal organizations often engage in illicit activities which fall below the radar of public awareness. One such activity is the trafficking of contraband tobacco; an underground industry with deep roots in organized crime – threatening the safety of all communities.
BC Crime Stoppers is currently engaged in a province-wide campaign to increase public awareness of the connection between contraband cigarettes, crime, and violence. The public need to be aware that when they buy contraband tobacco, they fund criminal organizations. When organized crime comes to your community, violence follows.
In British Columbia, it estimated the provincial government lost between $215 million and $591 million in tobacco tax revenue to the illegal sales between 2019 and 2022.
First and foremost, contraband cigarettes are illegal. These illegal operations are far from victimless crimes and erodes the foundations of safe communities – often flourishing under the control of well-organized criminal organizations.
It is essential to understand the extent of the relationship between contraband cigarettes and organized crime. In Canada, contraband tobacco is a multi-billion-dollar cash cow for organized crime. Selling illegal cigarettes is more lucrative than selling illicit drugs, yet the penalties for getting caught with illegal cigarettes are less harsh. Criminal organizations have created complex distribution networks, crossing international borders with ease, leveraging corruption, and utilizing violence to build their underground market. These criminal groups often are involved in more extensive criminal activities such as drug trafficking, human smuggling, gun smuggling, and money laundering.
In British Columbia, it estimated the provincial government lost between $215 million and $591 million in tobacco tax revenue to the illegal sales between 2019 and 2022. The Okanagan region and the Lower Mainland are hotspots for contraband tobacco. More frequently police throughout BC are making significant arrests and seizures of contraband tobacco in conjunction with weapons and drugs.
In addition to the threat to community safety, the sale of contraband tobacco undermines local economies in our communities. Most hard-hit are convenience stores which are the cornerstone of every community in BC. These businesses are operated by local legitimate small retailers who are negatively affected by unfair competition, diminished in-store foot traffic, lost revenue, and eroded profit margins.
To combat the dangerous relationship between contraband cigarettes and organized crime, governments need to adopt a comprehensive approach focusing on addressing the taxation issues of tobacco products, public education, law enforcement, and the courts. Taxation policies need to be addressed that have created the contraband tobacco market by increasing the cost of legal cigarettes. A multi-faceted strategy should also include public health campaigns that educate the public about the dangers of smoking and the risks associated with contraband products. Strengthening law enforcement efforts to dismantle smuggling networks and imposing stricter penalties on those involved are vital steps. And the courts need to impose sentences which reflect the seriousness of the issue.
In conclusion, the contraband tobacco industry is growing in British Columbia and has a deep negative impact on communities throughout the province. This illegal activity brings increased levels of violent crime undermining our local economies, eroding tax revenues, and increased health risks. The societal costs are high, in terms of community safety, public health, and lost government revenue – and too significant to be ignored. Collectively, we need to take a stand against the criminal organizations that benefit from this illicit trade and bring violence to our communities. It’s time to shine a light on this hidden underworld and confront the negative impacts of this illegal industry.