Canada’s Illegal Tobacco Trade a Global Boon for Organized Crime and Terrorism

Commentary Canada’s illegal tobacco trade is not just a domestic issue but a substantial financial boon to organized crime and terrorist organizations worldwide, including terrorist groups like Hamas. Ignoring Canada’s growing illegal tobacco trade also results in provinces losing billions in tax revenue while enriching organized criminal networks both domestically and internationally. As of 2023, the RCMP estimates that 175 criminal organizations are involved in illicit tobacco. They are taking advantage of high cigarette taxes and lax enforcement of the Indian Act’s on-reserve tax exemption intended only for First Nations people. This problem, once confined to parts of Ontario, Quebec, and Atlantic Canada, has ballooned across the country, notably expanding in British Columbia and Alberta due to the high revenue potential....