Alberta government is taking aim at the province’s booming illegal tobacco market with tough new measures in its 2025 budget, earning praise from retailers and vowing to disrupt organized crime linked to contraband sales.
The Convenience Industry Council of Canada (CICC) applauded the province’s plan, which includes doubling enforcement officers, introducing hefty fines, and improving data sharing to tackle tobacco trafficking.
“Contraband tobacco hurts local businesses, drains public funds, and fuels organized crime nationwide,” said Sara MacIntyre, CICC’s Vice-President for Western Canada.
“The government listened to our concerns and acted. These steps will make a real difference.”
Alberta’s 2025 budget promises stronger enforcement against illegal tobacco by doubling the number of officers in the provincial Tobacco Enforcement Unit.
Officials say the expanded team will improve efforts to intercept traffickers and shut down sales of contraband products.
The province will also impose new financial penalties to deter participation in the illegal market.
Fines will be set at three times the unpaid taxes for anyone caught possessing or selling contraband cigarettes, tobacco sticks, or fine-cut tobacco.
The penalties will also apply to unauthorized possession of cigars containing more than 1,000 grams of tobacco.
To strengthen coordination, the government plans to introduce legislation requiring authorities to report all contraband seizures.
This move aims to ensure consistent data collection and enforcement across jurisdictions.
Alberta will also collaborate with other provinces to boost cross-border efforts against trafficking networks.
Additionally, the province vows to pressure Ottawa for stronger federal action.
Contraband tobacco often crosses provincial and international borders, making it a national issue requiring federal leadership.
A 2024 report by Ernst & Young, commissioned by the CICC, estimated illegal tobacco makes up 29.4% of Alberta’s market.
Legal cigarette sales plummeted 44.8% between 2019 and 2023, costing the province over $102 million in lost tax revenue last year.
MacIntyre said the CICC will continue working with officials to ensure the measures take effect and explore new solutions.
“This shows Alberta is serious about protecting communities,” said MacIntyre.
