Contraband tobacco is becoming a bigger problem in Windsor-Essex.
A study, conducted on behalf of the Ontario Convenience Stores Association (OCSA), found illegal cigarettes now account for 24 per cent of all cigarettes smoked in Windsor.
That is up from 15.5 per cent in 2016.
The study also reveals the volume of contraband tobacco being consumed by Ontario residents jumped to 37.2 per cent, up 13 per cent from 2016 and up 67 per cent from only four years.
Southwestern Ontario showed the highest increase in contraband levels, from 26 per cent in 2016 to 33.9 per cent this year. The region is the second highest contraband territory in the province, behind Northern Ontario at 60.4 per cent.
In terms of locations where illegal cigarettes are found, high schools reported the biggest year-over-year increase in contraband levels – a 5 per cent rise from the previous year.
This marks the tenth year in a row that the OCSA has conducted the contraband study.
It says repeated government tax hikes means the retail price gap between legal tobacco and contraband tobacco continues to widen, making illegal cigarettes financially more attractive.
The study also claims organized crime groups are actively involved in the distribution and sale of illegal cigarettes.
“The rapid growth of contraband tobacco has meant increased profits for organized crime at the expense of hundreds of small businesses like convenience stores who are losing more than $1.1 billion in legal sales each year,” says Dave Bryans, the CEO of the OCSA. “It’s time for the Ontario government to realize that every time they increase taxes on legal tobacco, more smokers turn to the black market.”
The study also suggests the profits from contraband tobacco are being used by organized crime to fund other criminal activities that pose a threat to Ontario communities.
Bryans wants the Ontario government to reconsider announced plans to increase tobacco taxes in their next budget.
