Shops selling native cigarettes in Kanesatake reserve. Ottawa announced Wednesday a new plan to fight illegal cigarettes smuggling. John Mahoney/Canwest News ServiceFrom The Montreal Gazette:
'We know it's a huge problem'; To combat smuggling, province wants new and higher taxes, fewer licences
Quebec is preparing a list of demands to the federal government to help the province tackle the problem of contraband tobacco, which fuels organized crime and costs Quebec an estimated $300 million a year in lost tax revenue.
The demands include imposing taxes on bales of raw tobacco, hiking tobacco import taxes and reducing the number of tobacco manufacturing licences issued by the federal government, an official in Quebec Public Security Minister Jacques Dupuis's office said.
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