They raised the taxes on legal cigarettes to exorbitant prices driving everyone to purchase illegal cigarettes. Why would anyone pay 160 for a carton when they can get one for under 40?
Ok_Manufacturer_5323 on
Does the author mean that reservation cigs are saving Canadians billions in taxes and retail mark up? There isn’t any reason it should cost nearly $20 a pack
Glistening_rat_vulva on
This isn’t new. I can remember people making this argument in 2006.
Efficient-Scene5901 on
So? The government and health authorities don’t want people smoking anyways – their ability to collect money is going to end at some point.
According_Comedian69 on
Costing Canadians billions? Or the government?
Isn’t the point of the high taxes to discourage smoking and use of tobacco products? Which would result in the same tax shortfalls.
Still-Good1509 on
Im confused is this about a legit criminal outfit or is it about ppl buying smokes on the rez
explosive_fascinator on
A Canadian publication should use the proper Canadian terminology: rez darts.
eyeredd on
It isn’t costing Canadians billions! This is ridiculous statement. What the article should be stating is we potentially could have generated income from the sale of those cigarettes. However, there was no plan or budget forcast on lost sales revenue so there is NO “costing us billions” going on here.
Redbulldildo on
When something is taxed 200%, people are going to find a way around it, and I don’t blame them.
DoctorBocker on
Gotta say, it’s wild to see an article that headlines “illegal cigarettes” over hundreds of kilos of meth and coke.
ArtisticStatement912 on
Where do you buy them? 😂
bosnanic on
Not a regular smoker but when I buy a pack once in a blue moon it’s $30 of course regular smokers are going to look for cheaper alternatives. The whole point of the extreme high sin tax on cigarettes is to discourage people from smoking but it seems like the government is only mad that it lost a lucrative revenue stream.
IndependenceGood1835 on
Hmmm, tax everyone to death and enable cost of living to get out of control and then wonder why people look for cheaper alternatives……
Gov’t can either lower sin taxes or take on the reserves. And they dont want to do either. I just wish some major booze manufacturer set up a brewery and distillery on a reserve.
The cigarettes aren’t really illegal. Unless they are sold off reserve.
Interestingshits on
It’s call « price elasticity » and this is a textbook example of why governments need to know about basic economics…
Lost-Comfort-7904 on
Funny watching all these news sites have to tip toe around the problem without ever saying whose selling said cigarettes because that would be wrong to point out. “There’s a crime here folks, but let’s not ever discuss whose doing it, why they can do it so easily, and why this problem will never go away!”
toiletcleaner999 on
Instead of making quit smoking aids free so people had an option you taxed cigarettes 200%. Nicotine is an addiction, what did you think would happen?
gafflebitters on
I find this story amusing. Politicians have been increasing the tax on cigarettes to ridiculous levels knowing nobody would stand in opposition, and feeling smug about it, these idiots CREATED this situation. I do like how the writer of this story tries to make me believe that the money that the government collects goes only towards altruistic causes by not giving the full list of things that it supports.
Learning how to interpret the news is a skill.
maxgrody on
On top of all the other billions
BuzzINGUS on
Or how about this headline.
Corporations are not paying enough tax because they line the pockets of politicians to change the laws in their favour.
Then the corporations raise prices to increase their profit margins.
DESTROYING Canadians quality of life and buying power.
Choosemyusername on
If the illegal ones have gigantic profit margins, imagine the government ones.
A full carton of illegal ones sell for less than a pack of government ones.
KeyanFarlandah on
You should see how they’ve taxed Cigars, something that would cost you $3-5 in the states can be $30+ up here after taxes it’s insanity
Spare-Half796 on
Native reservations shouldn’t be allowed to sel nicotine products the way they do. Traditional tobacco sure but they have no historic tie to cigarettes and zyns
Saint_of_Stinkers on
I had a friend who died from smoking tobacco. He could not afford the legal ones and just could not quit. He would buy packs of smokes from a guy who stood in a street corner. They were very cheap compared to store bought. They were also terrible quality.
I had a puff on one once and it was absolutely terrible. It was hot, harsh, tasted like tar and I swear there were pieces of wood in with the ash. Since these things were unregulated there is no telling just what he was smoking. I can’t prove anything but I feel that his life was shortened not only by smoking cigarettes but by smoking those cigarettes he got on the streets of Vancouver’s Downtown East Side.
QuietlyObserving7 on
Imagine then the huge profit margins tobacco/governments make on sales/taxes. Its the mob crying someones cutting into their profits.
Mother_Tune_3198 on
The cheaper cigs at the rez is where everyone goes unless you run out. And the rez even sells menthol there. Illegal in Ontario since 2017 anyways to sell.
KosherPigBalls on
It’s called the Laffer Curve. It’s the point where taxes get so high that you begin collecting less money because of disincentive and lack of compliance.
-Mage-Knight- on
I literally don’t know anyone that smokes anymore.
Few-Education-5613 on
No they aren’t
Dano1988 on
Stop making things illegal that don’t need to be illegal and you’ll stop the crime. It happens that way with everything.
skelecorn666 on
Do they want reconciliation or not?
The Rez is the best, I still get actual service there.
Poulinthebear on
This isn’t new news haha. As a dumb kid relocating cigarettes was an easy way to make $2000 on a Saturday.
This is clearly an over taxing situation, while you’re not supposed to smoke, many still do. The same argument is being made for nicotine pouches. Most pouches are $3-7 in the USA, but in Canada they are taxed to death in the region of $14-18 dollars and limited to 4mg of nicotine. One would think you would want to incentivize methods of quitting smoking.
One-Measurement-9529 on
If illegal cigs have a “Gigantic” profit margin, what kind of profit margin do legal cigarettes have?
MrNostalgiac on
You can’t make legal options exorbitantly more expensive than illegal options and then cry when people choose illegal options.
Just about every “drugs should be legal” advocate is in favor of taxing the hell out of these products, but you can’t just charge any amount you want and expect people to keep paying.
When the legal option is only marginally, or at least reasonably more expensive than illegal options – most people will buy legally.
lucifertangerine on
Maybe if smokes weren’t ridiculously expensive then this wouldn’t happen. It may have helped some smokers quit, but the rest just go to the black market cause it’s cheaper
CashComprehensive423 on
To think if they only came down harder on flavoured vapes when they came out. A whole new generation of smokers would not have been hatched.
EdHuntArt on
You can’t lose what you never had. It can’t cost billions foo, it just went on by. Like big companies claiming a loss when in reality they don’t meet predicted financial profit; you cnt lose what you never had.
Walkinghawk22 on
So you’re saying there’s gonna be a black market alternatives for a product most people can’t afford? Say it ain’t so!!! Didn’t they learn no matter what you do smokers ain’t gonna quit ? You could turn the pack poop brown and throw warning labels all over it but smokers will still smoke. Australia is a prime example raising prices doesn’t stop nicotine fends.
38 Comments
They raised the taxes on legal cigarettes to exorbitant prices driving everyone to purchase illegal cigarettes. Why would anyone pay 160 for a carton when they can get one for under 40?
Does the author mean that reservation cigs are saving Canadians billions in taxes and retail mark up? There isn’t any reason it should cost nearly $20 a pack
This isn’t new. I can remember people making this argument in 2006.
So? The government and health authorities don’t want people smoking anyways – their ability to collect money is going to end at some point.
Costing Canadians billions? Or the government?
Isn’t the point of the high taxes to discourage smoking and use of tobacco products? Which would result in the same tax shortfalls.
Im confused is this about a legit criminal outfit or is it about ppl buying smokes on the rez
A Canadian publication should use the proper Canadian terminology: rez darts.
It isn’t costing Canadians billions! This is ridiculous statement. What the article should be stating is we potentially could have generated income from the sale of those cigarettes. However, there was no plan or budget forcast on lost sales revenue so there is NO “costing us billions” going on here.
When something is taxed 200%, people are going to find a way around it, and I don’t blame them.
Gotta say, it’s wild to see an article that headlines “illegal cigarettes” over hundreds of kilos of meth and coke.
Where do you buy them? 😂
Not a regular smoker but when I buy a pack once in a blue moon it’s $30 of course regular smokers are going to look for cheaper alternatives. The whole point of the extreme high sin tax on cigarettes is to discourage people from smoking but it seems like the government is only mad that it lost a lucrative revenue stream.
Hmmm, tax everyone to death and enable cost of living to get out of control and then wonder why people look for cheaper alternatives……
Gov’t can either lower sin taxes or take on the reserves. And they dont want to do either. I just wish some major booze manufacturer set up a brewery and distillery on a reserve.
The cigarettes aren’t really illegal. Unless they are sold off reserve.
It’s call « price elasticity » and this is a textbook example of why governments need to know about basic economics…
Funny watching all these news sites have to tip toe around the problem without ever saying whose selling said cigarettes because that would be wrong to point out. “There’s a crime here folks, but let’s not ever discuss whose doing it, why they can do it so easily, and why this problem will never go away!”
Instead of making quit smoking aids free so people had an option you taxed cigarettes 200%. Nicotine is an addiction, what did you think would happen?
I find this story amusing. Politicians have been increasing the tax on cigarettes to ridiculous levels knowing nobody would stand in opposition, and feeling smug about it, these idiots CREATED this situation. I do like how the writer of this story tries to make me believe that the money that the government collects goes only towards altruistic causes by not giving the full list of things that it supports.
Learning how to interpret the news is a skill.
On top of all the other billions
Or how about this headline.
Corporations are not paying enough tax because they line the pockets of politicians to change the laws in their favour.
Then the corporations raise prices to increase their profit margins.
DESTROYING Canadians quality of life and buying power.
If the illegal ones have gigantic profit margins, imagine the government ones.
A full carton of illegal ones sell for less than a pack of government ones.
You should see how they’ve taxed Cigars, something that would cost you $3-5 in the states can be $30+ up here after taxes it’s insanity
Native reservations shouldn’t be allowed to sel nicotine products the way they do. Traditional tobacco sure but they have no historic tie to cigarettes and zyns
I had a friend who died from smoking tobacco. He could not afford the legal ones and just could not quit. He would buy packs of smokes from a guy who stood in a street corner. They were very cheap compared to store bought. They were also terrible quality.
I had a puff on one once and it was absolutely terrible. It was hot, harsh, tasted like tar and I swear there were pieces of wood in with the ash. Since these things were unregulated there is no telling just what he was smoking. I can’t prove anything but I feel that his life was shortened not only by smoking cigarettes but by smoking those cigarettes he got on the streets of Vancouver’s Downtown East Side.
Imagine then the huge profit margins tobacco/governments make on sales/taxes. Its the mob crying someones cutting into their profits.
The cheaper cigs at the rez is where everyone goes unless you run out. And the rez even sells menthol there. Illegal in Ontario since 2017 anyways to sell.
It’s called the Laffer Curve. It’s the point where taxes get so high that you begin collecting less money because of disincentive and lack of compliance.
I literally don’t know anyone that smokes anymore.
No they aren’t
Stop making things illegal that don’t need to be illegal and you’ll stop the crime. It happens that way with everything.
Do they want reconciliation or not?
The Rez is the best, I still get actual service there.
This isn’t new news haha. As a dumb kid relocating cigarettes was an easy way to make $2000 on a Saturday.
This is clearly an over taxing situation, while you’re not supposed to smoke, many still do. The same argument is being made for nicotine pouches. Most pouches are $3-7 in the USA, but in Canada they are taxed to death in the region of $14-18 dollars and limited to 4mg of nicotine. One would think you would want to incentivize methods of quitting smoking.
If illegal cigs have a “Gigantic” profit margin, what kind of profit margin do legal cigarettes have?
You can’t make legal options exorbitantly more expensive than illegal options and then cry when people choose illegal options.
Just about every “drugs should be legal” advocate is in favor of taxing the hell out of these products, but you can’t just charge any amount you want and expect people to keep paying.
When the legal option is only marginally, or at least reasonably more expensive than illegal options – most people will buy legally.
Maybe if smokes weren’t ridiculously expensive then this wouldn’t happen. It may have helped some smokers quit, but the rest just go to the black market cause it’s cheaper
To think if they only came down harder on flavoured vapes when they came out. A whole new generation of smokers would not have been hatched.
You can’t lose what you never had. It can’t cost billions foo, it just went on by. Like big companies claiming a loss when in reality they don’t meet predicted financial profit; you cnt lose what you never had.
So you’re saying there’s gonna be a black market alternatives for a product most people can’t afford? Say it ain’t so!!! Didn’t they learn no matter what you do smokers ain’t gonna quit ? You could turn the pack poop brown and throw warning labels all over it but smokers will still smoke. Australia is a prime example raising prices doesn’t stop nicotine fends.
Corey, Trever, Smokes lets go