Illegal cigarettes 10% of all those smoked, convenience stores say - Action News
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Illegal cigarettes 10% of all those smoked, convenience stores say

Convenience stores in Newfoundland and Labrador claim illegal cigarettes could account for 10 per cent of all those smoked in the province, and it's costing millions in lost taxes.

12% of cigarette ends found at Confederation Building illegal

Contraband tobacco

9 years ago
Duration 1:02
The provincial government is losing millions in tobacco taxes to illegal cigarette sales says the Atlantic convenience stores association.

The association representing convenience stores in Newfoundland and Labrador says illegal cigarettes could account for 10 per cent of all cigarettes smoked in the province, and it's costing millions in lost taxes.

"That's way too high a number," saidMikeHammoud, president of the Atlantic Convenience Stores Association, whichreleasedresearchTuesday morningitsays shows theprevalence of illegal cigarettes in the province.

Mike Hammoud says illegal cigarettes mean a loss of tax revenue that's unfair to taxpayers and retailers. (Mike Hammoud)

The association hired a Montreal firm that analyzedalmost 3,000 cigarette ends collectedfrom 21 sites in St. John's, Mount Pearl, Paradise, Conception Bay South, Carbonear and Avondale. The work started in mid-September.

"Twelve per cent of the cigarette end samples collected from outside the provincial government's own Confederation Building were illegal," a news release said.
The research collected 3,000 cigarette ends at sites around the northeast Avalon. (CBC)

The researchfound the percentageof illegal cigarettes at21 sites ranged from zero to a high of 26.4 per cent along George and Adelaide Streets in St. John's.

The convenience store industry said it strongly believes the Newfoundland and Labradorgovernment should cut down on illegal cigarettes by looking at enacting tougher legislation.

Hammoud said a recent GrandFalls-Windsorbust where police recovered 100,000 illegal cigarettesrepresented $28,000 in lost tax revenue. He added a bust that big traditionally means a lot more illegal product is making its way into the province.

"It's not fair to taxpayers, it's not fair to honest hard-workingretailersthat criminals are getting away with this," he said.

This table shows where illegal cigarette ends where found at sites in the province. (Submitted by Atlantic Convenience Store Association)