For immediate release:
February 1, 2006

Barrett, Tory expose tobacco tax as money- grab

Kitchener – The latest increase in tobacco taxes won’t deter smokers, but it will boost the black market.

Haldimand-Norfolk-Brant MPP Toby Barrett commented on the latest $1.25 increase following PC Leader, John Tory’s remarks that, ``There is history that shows that the higher you raise the prices, the more you create a problem with contraband and smuggling.''

“Anyone who has watched the tobacco tax story over the last 20 years knows there is a direct relationship between higher tobacco prices and increased smuggling,” Barrett asserted during a break from Finance Committee pre-budget meetings in Kitchener today. “Even leading anti-tobacco advocates agree that this won’t have much of an effect on the number of people smoking and yet this government still moves blindly forward because they are addicted to the revenue tobacco taxes provide.”

Just last Friday, RCMP in Windsor announced a seizure of about 2,700 cartons of unstamped tobacco products and 130 bags of loose cigarettes.

``Any time that taxes are increased, of course you are going to have an increase in smuggling,'' Windsor RCMP Const. Annette Bernardon was quoted in a Canadian Press article.

This marks the fourth increase in tobacco levies since the Liberals were elected in 2003 – the latest increase alone brings the provincial tax total to $24.70, up from $23.45. A carton of cigarettes typically sells in Ontario for about $67.

In a Canadian Press story, Ontario Campaign for Action on Tobacco spokesperson Michael Perley was reported to have said that he doubts the tax increase will do much to deter smokers.

The hike is expected to add another $35 million to provincial coffers.

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For more information please contact
MPP Toby Barrett at: 519-428-0446, 416-325-8404 or 1-800-903-8629