Imperial Tobacco Canada congratulates provincial governments for tackling contraband tobacco
Imperial Tobacco Canada issued a statement congratulating the governments of Ontario and Alberta for their “decisive action against contraband tobacco, reinforcing their commitment to public safety and the protection of government revenues.”
According to Imperial Tobacco Canada, contraband tobacco continues to undermine public safety and drain government revenues nationwide.
“In Ontario, illicit tobacco accounts for nearly 40% of the market, translating to an estimated $557 million in annual lost tobacco tax revenue—more than half a billion dollars that could otherwise support essential public services. In Alberta, nearly 30% of the market is illegal, resulting in $185 million in lost tax revenue.”
RCMP estimates that 175 organized crime groups are involved in the contraband tobacco trade, often using profits to fund other criminal activities. Seizures frequently include cocaine, fentanyl, and weapons, underscoring the broader threats associated with this illegal market.
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“Ontario and Alberta have shown real leadership in tackling contraband tobacco,” said Eric Gagnon, vice-president, corporate and regulatory affairs at Imperial Tobacco Canada. “These measures are critical to protecting communities and reducing the influence of organized crime. Imperial is committed to working closely with governments, law enforcement, and stakeholders to deliver effective, long-term solutions.”
The company added it is encouraged by tangible steps taken in both provinces, including:
- Alberta’s introduction of two new administrative penalties under the Tobacco Tax Act targeting the purchase, storage, and sale of contraband tobacco – a major step forward creating real consequences for illegal operators and closing enforcement gaps.
- Alberta’s move to require all enforcement agencies to report seizures of illegal tobacco, ensuring consistent provincial data collection and enabling more strategic, intelligence-driven enforcement.
- Ontario’s continued commitment to enforcement and policy consultation, including exploring collaborations with law enforcement, stakeholders, and First Nations partners, and reviewing authorities and potential amendments to support police officers with the training and education needed for timely and legally sound roadside searches for suspected contraband tobacco.
“Provinces are doing their part, but Ottawa must step up and enforce existing laws—not just on tobacco, but also on vapes and nicotine pouches. Canadians deserve better protection from the negative impacts caused by the illegal market,” added Gagnon.
