The Convenience Industry Council of Canada welcomed the Government of Alberta’s new measures against the growing problem of contraband tobacco. Measures in the newly introduced Financial Statutes Amendment Act legislation include strong new administrative penalties that significantly increase penalties for those involved in contraband tobacco.
“Alberta’s new administrative penalties show clear leadership in addressing contraband tobacco, a problem that hurts retailers, hurts government revenues, and fuels organized crime across Canada,” said Sara MacIntyre, Vice President of Western Canada for CICC. “We hope that other provinces follow Alberta’s example in addressing this problem and adopt similar measures.”
“Finally, we have a government that listens and is acting for community convenience stores. Contraband tobacco funds other more serious crime in our communities, and it has forced many retailers to close, unable to compete with the black market. We’ve appreciated working with the Government of Alberta, are pleased to see our recommendations reflected in their actions. We commend Premier Danielle Smith and Finance Minister Nate Horner for this strong and decisive action,” MacIntyre added.
Last year, an Ernst & Young Report commissioned by CICC on Contraband Tobacco estimated that illegal tobacco accounts for at least 29.4% of the market in Alberta. In 2023 alone, the resulting provincial tobacco tax revenue loss may have been over $102 million to Alberta.
| Prov. | Decline of Legal Tobacco Sales (2023) | Estimated Size of Legal Tobacco Market (2023) | Contraband Tobacco Market Size (2023) | Annual Lost Revenues to Provincial Governments (2023) |
| AB | 44.8% | 70.6% | 29.4% | $102M |
| MB | 33.3% | 55.0% | 45% | $60M |
| QC | 25.5% | 88.1% | 11.9% | $58M |
| NB | 37.4% | 48% | 52% | $42M |
| NS | 28.4% | 61.6% | 38.4% | $54M |
FOR MORE INFORMATION OR MEDIA INQUIRIES, please contact:
Sara MacIntyre
Vice President, Western Canada
Convenience Industry Council of Canada
(647) 334-8054
[email protected]
