Imperial Tobacco Canada suggests organized crime is fueling a surge in illegal tobacco sales across British Columbia.

New research from Abacus Data shows that 34 per cent of all cigarette sales in B.C. are illegal.

With the province increasing taxes on tobacco products over the last four years, the Legal and Regulatory Affairs Vice President at Imperial Tobacco says he is not surprised about the surge in illegal cigarette sales across the province.

Eric Gagon adds that organized crime is fueling the spike, noting illicit tobacco sales are mostly coming from illegal manufacturers in Ontario and Quebec.

“The RCMP says there are 50 illegal tobacco manufacturing operations in Canada. Basically, these are the ones producing different products and different brands.”

“Initially, it was more focused in Quebec and Ontario, but with the price of cigarettes now in British Columbia, the illegal traffickers saw a business opportunity, and now they are shipping these products all the way to western Canada.”

A carton of cigarettes sold by law-abiding retailers in B.C. goes for about $180, while the contraband carton sells for an average of $45. Gagon adds that B.C. is the most expensive place to buy cigarettes in Canada.

“For example, B.C. is the only place where you go on Craigslist, and you have 96 website advertisements advertising cigarettes, which is illegal in Canada.”

Additionally, Gagon suggests there is also a large societal impact on our community. He explains the RCMP says the people dealing illicit tobacco products are the same as those dealing illicit firearms, human trafficking, and other criminal activities.

“These illegal traffickers are often meeting customers in the parking lot of these convenience stores, opening their trunks, selling their cigarettes openly, and nobody is doing anything about it. So it’s not just an impact on the tobacco companies, but it has an impact on many other stakeholders.”

Since 2006, Gagon says over $30 billion of tax revenue has been diverted from federal and provincial governments and into the hands of many of Canada’s most dangerous organized crime groups as they profit from this illicit trade expansion.

“Nobody is going to cry because big tobacco is losing money, but there is a big societal impact here,” he said. “We have a number of independent retailers that are losing their business to illicit traffickers and they are calling us to say they are losing mom and pop shop.”