New tax linked to boost in organized crime: MPP
By Kim Zarzour
May 17, 2010
The PC Critic for Economic Development and Trade told a press conference at Queen's Park today that the 8 per cent HST will drive up prices on tobacco products, making illegal, untaxed tobacco - trafficked by organized crime - cheaper and more appealing to youth.
"Toronto Police Chief Bill Blair has told me that contraband tobacco is the stock and trade of organized crime, and the money it generates is used to buy the guns and drugs that are threatening our neighbourhoods," Mr. Shurman said. "When you add another 8 per cent tax to legal cigarettes July 1, it doesn't take a rocket scientist to figure out what that's going to do."
Mr. Shurman was hosting the press conference during which members of the Ontario Convenience Stores Association delivered a 4,000-name petition calling on the McGuinty government to invoke temporary measures to prevent the diversion of sales to contraband.
New tax linked to boost in organized crime: MPP
By Kim Zarzour
May 17, 2010
Ontario's new harmonized sales tax will lead to more drugs and guns on the street, Thornhill MPP Peter Shurman warned Monday.
The PC Critic for Economic Development and Trade told a press conference at Queen's Park today that the 8 per cent HST will drive up prices on tobacco products, making illegal, untaxed tobacco - trafficked by organized crime - cheaper and more appealing to youth.
"Toronto Police Chief Bill Blair has told me that contraband tobacco is the stock and trade of organized crime, and the money it generates is used to buy the guns and drugs that are threatening our neighbourhoods," Mr. Shurman said. "When you add another 8 per cent tax to legal cigarettes July 1, it doesn't take a rocket scientist to figure out what that's going to do."
Mr. Shurman was hosting the press conference during which members of the Ontario Convenience Stores Association delivered a 4,000-name petition calling on the McGuinty government to invoke temporary measures to prevent the diversion of sales to contraband.
Convenience stores depend heavily on the sale of tobacco products and the HST will drive that business away, said Wendy Kadlovski, the association chair and director of operations for Nicholby's, headquartered in Unionville, In the past two years, Ontario has seen 2,400 convenience stores closed in their doors.
But the HST isn't just bad for business, Ms Kadlovski said. It's bad for its impact on organized crime and youth anti-smoking initiatives.
"We as an organization are very diligent about selling to minors.
Contraband cigarettes are often made in illegal, unregulated factories, smuggled into Canada and sold to kids out of the trunks of cars. They are priced cheaply, without tax, and with no government inspection, testing, or review.
Nearly half of all tobacco sales in Ontario is controlled by organized crime groups, Dave Bryans, President of the Ontario Convenience Stores Association, said. "Bringing in the HST without changes will be like throwing gasoline on a fire."
Currently tobacco sales are exempt from Ontario's 8 per cent Provincial Sales Tax because a Provincial Tobacco Tax (PTT) is added to the product instead.
Ms Kadlovski said the convenience store association is asking the government to reduce the PTT by eight per cent to offset the the effect of the HST.
Studies have shown that the prevalence of contraband tobacco is rapidly growing in Canada - and in York Region especially.
A study commissioned by the National Coalition Against Contraband Tobacco (NCACT) released in the fall showed the highest incidence of youth access to contraband tobacco is in York Region
The coalition collected cigarette butts from public grounds outside school property and examined to determine their origin: legal, contraband, or unknown.
It revealed the proportion of contraband as follows: Newmarket 48 per cent; Aurora 42 per cent; Markham 27 per cent; Thornhill 20 per cent; Sutton 33 per cent; Keswisk 23 per cent; Bradford 25 per cent; Innisfil 20 per cent.