The Convenience Industry Council of Canada (CICC)  proudly applauded the Alberta government’s Budget 2025 measures to combat the massive contraband tobacco market in the province. 

“It’s clear that the government heard calls from our industry and local stores that contraband tobacco is big problem for retailers, government revenues and funds organized crime throughout the country. We have been meeting with officials on this issue for some time and are pleased the government listened and acted on our recommendations,” said Sara MacIntyre, Vice-President, Western Canada.

“Today’s Budget commitments will make a real difference for stores in Alberta and demonstrates that the government is taking this issue seriously. We will continue to work with officials and ministers to ensure these measures are fully implemented and identify new solutions to keep illegal tobacco and organized crime out of our communities, ” concluded MacIntyre.

Budget 2025 Commitments (page 118):

• Strengthen Enforcement – “Budget 2025 will double the number of officers in Alberta Gaming, Liquor, and Cannabis’s Tobacco Enforcement Unit, which will improve their ability to disrupt contraband trafficking and sales.”
• Introduce New Administrative Penalties – “Government will introduce two new administrative penalties to increase the financial consequences of participating in contraband activities. The penalties will be set at three times the tax otherwise payable and will apply to the possession or sale of contraband cigarettes, tobacco sticks and fine-cut tobacco, or the unauthorized possession of cigars that in total contain more than 1,000 grams of tobacco.”
• Improve Coordination – “Government will introduce legislation to mandate the reporting of contraband seizures to ensure consistent data collection and enforcement of penalties. Additionally, Alberta intends to work with other provinces to strengthen nationwide enforcement efforts.”
• Advocate for Stronger Federal Action – “Contraband tobacco crosses provincial and international borders, so Alberta will advocate for the federal government to fulfil its responsibility to address this critical national issue.”

Further information on the contraband market in Alberta: 

A 2024 Ernst & Young Report (commissioned by the CICC) on Contraband Tobacco estimated that illegal tobacco accounts for at least 29.4% of the market in Alberta .Between 2019-2023 sales of legal, tax-paid cigarettes declined 44.8%! In 2023 alone, the resulting provincial tobacco tax revenue loss may have been over $102 million in Alberta.

FOR MORE INFORMATION, please contact:
Sara MacIntyre,
VP for Western Canada,
Convenience Industry Council of Canada at
(647) 334-8054 or smacintyre@convenienceindustry.ca.