Illegal Cigarette Trade Reducing Tobacco Sales

Source from:  Written by Carl Meyer, Assistant News Editor Wednesday, 28 November 2007 12/03/2007

Increase in cigarette trafficking blamed on tax hikes Cigarette vendors on York University's Keele Campus have blamed illegal cigarette trafficking for putting a dent in their sales. Ali Jassani, the owner of Gateway Cigar Stores, claimed his overall cigarette sales have been dropping significantly due to the increase of illegal cigarettes on campus. The owner of The General Store, a convenience store in York Lanes, also claimed his sales have been dropping because of illegal cigarettes, since dealers are selling them for "three bucks a pack," rather than the regulated price of $8 to $10. However, York Security and York Lanes management have not dealt with the issue recently, said Alex Bilyk, director of media relations at York University. Bilyk stated that since the sale of illegal cigarettes is a criminal matter, York Security would have to notify the Toronto Police if they encountered a dealer. "It's hypothetical, but if it's a criminal act, we really do rely on the police to do that," he said. Physicians for a Smoke-Free Canada estimated that 16 percent of smokers buy illegal cigarettes. A consortium of North American tobacco companies, however, claim one third of their sales are being cut out by the sale of illegal cigarettes. Tobacco smuggling has skyrocketed in recent years, claimed the RCMP. They said they have seized 17 times more tobacco in smuggling stings since 2001. According to a CTV report, Ontario contains 53.8 percent of the illegal cigarette trade in Canada. Students are smoking illegal cigarettes in high numbers, said researchers hired by the Canadian Convenience Stores Association. A recent study claimed 24 percent of cigarette butts in high schools were contraband. Many blame the increases on a series of tax hikes on cigarette sales both in Ontario and nationally. In 2001, the federal government raised cigarette taxes by $5 a carton. Since 2003, the Ontario government has hiked cigarette taxes three times. A study in an October issue of The Globe and Mail showed that losses on tax revenue from untaxed illegal cigarettes result in the federal government losing over $1 billion each year. York University has stated its intention to go "smoke-free" by 2009, banning smoking from Pond Road to Steeles Avenue. York has already banned smoking in the colonnade that connects York Lanes to the Student Centre. The Smoke-Free Ontario Act came into force on May 31, 2006. Among its stipulations, it banned smoking in "enclosed workspaces" and "enclosed public spaces" and placed restrictions on "retailer displays" of tobacco products. As of May 31, 2008, tobacco vendors across the province will no longer be able to display any tobacco products in their stores. The Ontario Ministry of Health Promotion defended the policy on their website. "Studies show that the more people are exposed to point-of-sale advertising and promotion of tobacco products, the more likely they are to buy tobacco," the ministry stated. "Youth are particularly susceptible to this advertising." Youth, especially students, are known to encapsulate a large portion of the smoking population. Stresses like exams and essay deadlines mean students are more likely to turn to unhealthy habits like smoking, unhealthy food and sleep deprivation, said health educators. "I think it's fair to say that when students are stressed, it's possible that they may display unhealthier habits during [exam] times," said Leah State, a coordinator for Health Education and Promotion at York University. "When exam times come, [we] are usually dealing with students because they're stressed," echoed Kimberly Brunelle, assistant manager for Leave The Pack Behind, a student-run smoking cessation program financially aided by the provincial and federal governments. "Stress is the largest factor for why young adults in universities and colleges tend to pick up smoking or why they continue to smoke." A 2006 Health Canada estimate put the number of Canadian smokers at 17.7 percent nationwide. Enditem