VANCOUVER, BC, March 2, 2023 /CNW/ – In response to the Provincial Budget delivered by Premier Eby’s NDP government, British Columbia’s independent convenience retailers would like to recognize the government for setting aside important funding for vital services such as healthcare and affordable housing.
We’d also like to draw the government’s attention to the fact that Illicit trade robs British Columbians of millions of dollars in provincial tax revenue that could go directly to supporting health and social programs. For that reason we are disappointed more investments were not made to improve community safety by preventing contraband tobacco in B.C.
Stats show that due to the illegal tobacco market, there was an annual tax loss of approximately $275 million for the B.C. government in 2022, and a loss of approximately $126 million in tax revenue for the federal government in 2022.
What does this mean for British Columbians? It means that the $275 million tax loss due to contraband tobacco could go to much-needed investments in mental health and addiction services to help British Columbians.
Moreover, there is a significant decline when it comes to tobacco tax projections in 2023-24 for B.C. The tobacco tax revenue forecast has seen a steep decline from $644 million to $510 million. This represents a decline of 21%.
It’s time for the government to recognize that these losses in provincial tax revenue due to contraband tobacco add up. It’s time for the government to address the lack of enforcement when it comes to illicit trade that makes our communities unsafe and fuels organized crime. It’s time B.C. has a comprehensive plan to address the serious illicit tobacco trafficking problem.
B.C. retailers are also asking the provincial government to address the growing problem of contraband tobacco in B.C.
- Loss of sales: Every year, lawful and licensed convenience store owners lose out on millions in revenue due to the prevalence of illegal tobacco sales.
- Loss of tax revenue: Illicit trade robs British Columbians of millions of dollars in provincial tax revenue that supports B.C. social programs.
- Harming small businesses: Convenience store retailers in B.C. are suffering due to the inability to compete with organized crime groups.
- Stronger enforcement and policies needed: Better policies are required to stop contraband tobacco from further devastating convenience retailers and B.C. communities.
- B.C.’s inaction: Other provinces have acted to address the issue of contraband tobacco. It is time the B.C. government act to protect consumers, stores owners, and the safety of our communities.
The Convenience Retailers Alliance 4 Safe Communities is an advocacy group calling for action against contraband tobacco in British Columbia.
SOURCE Convenience Retailers Alliance
