Ottawa wants to butt out illegal tobacco ring
09.05.2008 16:07
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- Source: cbc.ca
The federal government says it wants to crack down on contraband tobacco by targeting illegal smoke manufacturers in First Nations communities, in Ontario and Quebec, where a price war has driven the cost of a carton of cigarettes down to $6, one-tenth the normal retail price. Federal Public Security Minister Stockwell Day vowed to step up efforts to dismantle cigarette manufacturers and distribution networks flourishing in several parts of the country, notably in the Mohawk communities in Quebec of Kanesatake, Kahnawake and Akwesasne (which straddles Quebec and Ontario). Day announced a new working group that brings together Canada Revenue Agency, Indian Affairs, Health Canada, the RCMP and Canada Border Services Agency to hone a federal strategy that targets illegal cigarettes. He didn't specify how much funding the group would get. The announcement was made as reports suggested cigarette cartons are being sold for as little as $6 in the Kahnawake Mohawk Reserve, southwest of Montreal. A price war has been brewing for a year in the Mohawk community, where the price of a carton has dropped dramatically from $22 last year, Montreal newspaper La Presse reported Wednesday. A 200-cigarette carton normally retails for about $65. Customers are making the trek to Kahnawake and Kanesatake from as far as New Brunswick to stock up on cigarettes, the report said. The Quebec government is aware of the problem but said it won't take an aggressive approach to clamping down on the black market for cigarettes. There are measures in place to control the trade of illegal tobacco products and they seem to be working, said Quebec revenue minister Jean-Marc Fournier. "We had 48 convictions in 2004-2005, and 772 last year," he said in Quebec City Wednesday. "Actions are being taken. Still, the problem continues to exist. But we are in action." Earlier this week, the Canadian Convenience Stores Association sounded the alarm about the crushing competition it faces from contraband cigarettes. In a speech at a Montreal business luncheon, association president Michel Gadbois said corner stores that must pay taxes on legal cigarettes they sell can't compete with contraband smokes selling for a fraction of the price. In April, the RCMP said they were closing in on the flourishing underground cigarette industry that costs the federal government as much as $2 billion in lost tax revenue per year. Police said most of the illegal tobacco seized by authorities comes from the Akwesasne Mohawk reserve, which straddles the Canada — U.S. border. With files from the Canadian PressPost a commentPeople have commented on this storyRecommend this storyPeople have recommended this storyStory Tools: E-MAIL | PRINT | Text Size: SMLXL | REPORT TYPO | SEND YOUR FEEDBACKStory comments (0)Sort:Most recent | First to last | Most recommendedPost your commentNote: The CBC does not necessarily endorse any of the views posted. By submitting your comments, you acknowledge that CBC has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that comments are pre-moderated/reviewed and published according to our submission guidelines. Comment:Characters allowed: 2500PostSubmission policyRelatedInternal Links90 per cent of illegal cigarettes made in Akwesasne: RCMPMPs call for crackdown on contraband cigarettes1.5 million cigarettes seized near BathurstMounties light up Que. contraband cigarette ringConsumer HeadlinesIf Mom were on the payroll, she'd earn $126,593: study00For the many roles they play, mothers in Canada would earn about $126,593 a year if they were on a company payroll, a study says.Soaring grain costs could mean pricier beef, Alta. farmers say00The rising costs of food staples worldwide may boost the price of Alberta steaks by the fall, farmers warn. Olympic gear sales strong despite flap over made-in-China pieces00The flap over made-in-China pieces in Canada's Summer Olympic apparel collection doesn't appear so far to have put a wrinkle in the Hudson's Bay Company's bottom line.'Whining' auto industry won't slow fuel economy goals: Schwarzenegger 00Gov. Arnold Schwarzenegger said Thursday that pressure from the auto industry will not deter California from attempting to impose strict emission rules for vehicles sold in the state.Worker fired for handing out free Timbit returning to work00After being fired for giving away a Timbit to a baby, single mom Nicole Lilliman says she'll return to her job and collect her much-needed paycheque until she can find work elsewhere. Consumer Life FeaturesYOUR SAYRising food costsVIDEOMade in CanadaIce house (Runs 5:36)TECHNOLOGYWeddingsHigh-tech photo booths latest trend for the big dayBLOGFood BytesTasty tidbits about food and its impact on our livesBLOGComm-OdditiesMan brews up beer can coffin designPeople who read this also read …
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