Tobacco Tax Increase Could Push Youth to Smoke

The Western Convenience Store Association (WCSA) is worried that a tobacco tax increase will do more harm than good. The association, a not-for-profit trade association representing convenience store retailers operating in Western Canada, is cautioning Financial Minister Michael De Jong and the Clark government against including a tobacco tax increase in next week's provincial budget.

"If the B.C government wants to keep our communities safe and keep tobacco out of the hands of youth, they will not raise taxes in the budget next week." said Andrew Klukas, President of the WCSA. "We are hopeful they will instead allocate additional resources to help recoup lost government revenue as an increase will continue to drive customers to the underground market."

The WCSA commissioned a contraband tobacco study, which examined discarded cigarette butts at 48 sites throughout British Columbia to determine if they were illegal, contraband, cigarettes. The study was conducted in 2014 and found that illegal tobacco usage rates were as high as 51.6 per cent. The average rate of contraband tobacco use at tested sites was just over 17 per cent.

According to WCSA, the tobacco tax rate has made B.C. more attractive to tobacco traffickers, as they have ensured widespread distribution throughout the province.

Illegal tobacco is sold without mandate health warnings no packages and without age verification checks. Without increased enforcement measures, the WCSA expect that increased taxes and regulations will drive the tobacco market underground. In short, illegal products will be more affordable and accessible to youth.

The WCSA's pre-budget submission emphasized the need for changes in the tobacco tax laws, practive anti-contraband legislation, and additional resources for the Ministry of Finance Revenue Enforcement Division.

"We want to work with the Government of British Columbia to prevent additional growth in the illicit market," emphasized Klukas. "Tax increases have long term consequences for law enforcement, communities and our small business retailers."

In a written statement, the finance ministry said that the government is committed to promoting health, and that tobacco use is the single most preventable cause of disease and death in B.C.

As of April 1st, 2014, the provincial tax on tobacco rose by $3,20 cents per carton, with the goal of reducing smoking rates, particularly among youth. High tax rates on tobacco are part of the provincial government's strategy to reduce tobacco use in British Columbia.

In terms of combating tobacco smuggling , the province does not tolerate such actions and will continue to work with federal and provincial jurisdiction to tackle the issue.

"The Ministry of Finance has a dedicated investigations unit that includes a Criminal Investigations Department and a Forensic Analysis Laboratory, which conduct investigations into willful non-compliance and fraud against tax revenues," said the ministry. "The ministry has a designated Retail Tobacco Inspection Program that helps prevent the sale of contraband products in retail outlets."

In addition, no details about the upcoming provincial budget will be available until its release date on February 17th.