The Alberta government is set to strengthen measures against contraband tobacco through new legislation that mandates reporting of seizures and imposes harsher financial penalties on buyers, sellers, and distributors.
During a press briefing on Tuesday, Finance Minister Nate Horner emphasized that contraband tobacco not only poses risks to public health and facilitates underage access to tobacco but also creates unfair competition for legitimate retailers while reducing revenue essential for funding Albertans’ programs and services.
The proposed changes are part of Bill 12, known as the Financial Statutes Amendment Act (No.2), which was introduced in the legislature on the same day. If enacted, individuals involved in illegal tobacco activities could face fines amounting to three times the tax paid on legal tobacco products.
The penalties would apply to various forms of contraband tobacco, including cigarettes, tobacco sticks, fine-cut tobacco, and cigars containing over 1,000 grams of total tobacco. This announcement follows a recent significant seizure near the Alberta-Saskatchewan border.
A recent incident involved a routine traffic stop of a semi-truck on Highway 16 in Lloydminster, leading to the confiscation of unstamped cigarettes valued at $7.65 million, making it one of the largest seizures in Alberta. The interception disrupted the illegal tobacco trade significantly, according to Sgt. Christopher Byford.
The driver of the semi-truck, a 33-year-old man from British Columbia, was charged with multiple offenses, including fraud and unlawful possession of tobacco. The mayor of Lloydminster, Gerald Aalbers, highlighted the broader impact of such activities on the community and province.
In a study commissioned by the Convenience Industry Council of Canada (CICC), it was revealed that illegal cigarette sales cost Alberta approximately $262 million in tobacco tax revenue between 2021 and 2023. The study also indicated a rise in contraband sales, accounting for 29% of the cigarette market in Alberta, up from 13% in 2019.
Sara MacIntyre, the CICC’s vice-president for Western Canada, emphasized the detrimental effects of contraband tobacco on small businesses and the province’s revenue stream. The lobbying efforts of the council led to additional funding in the 2025 budget for the Alberta Gaming, Liquor, and Cannabis’s Tobacco Enforcement Unit.
MacIntyre praised Alberta’s proactive stance in addressing illegal tobacco and viewed the proposed changes in Bill 12 as a positive step forward. She highlighted Alberta as a leading example for other provinces to combat the illicit tobacco trade effectively.