WINNIPEG, MANITOBA--(Marketwired - May 5, 2015) - The Western Convenience Stores Association (WCSA) and its Manitoba retailers' are disappointed in the recent provincial budget that once again increased taxes on small business owners.
"Increased taxes on tobacco products will continue to fuel the illegal tobacco trade," said Andrew Klukas, President of the WCSA.
Manitoba's tobacco prices are the highest in Canada and the new tax will promote growth in the province's contraband market. Contraband is sold without mandated health warnings and without age-verification checks, to anyone who is willing to buy. Increased taxes and regulations drive the tobacco market underground, meaning these products are both more affordable and accessible to youth.
The tax increase followed major busts in recent weeks as Manitoba Finance Special Investigation Unit seized 60,060 contraband cigarettes. Given its unique location as the gateway to Western Canada, Manitoba is particularly vulnerable to interprovincial smuggling.
"The illegal tobacco problem is not going away and the province doesn't seem to be reaping any financial benefits here," added Klukas.
In 2013, the WCSA commissioned a contraband tobacco study that found illegal tobacco usage rates ranging from 10% to 39% in various locations across the province. The study examined discarded cigarette butts at public buildings and local high schools to determine if they were legal or illegal (contraband) cigarettes.
Manitoba's retailers continue to urge the province to allocate additional resources to its enforcement units and to introduce proactive contraband legislation.
ABOUT THE WCSA
The WCSA is a not-for-profit trade association that represents the interests of over 7,000 convenience store retailers operating throughout Western Canada. These retailers employ more than 50,000 people and contribute over $18 billion in sales to the local economy. Our mission is to foster the success of the convenience store industry in Western Canada by representing the best interests of our members, and the communities they serve.
Contact Information:
613.235.1400