The provincial government is looking at setting up a dedicated enforcement unit to crack down on the selling of illegal smokes.
The proposal emerges from the Strategic Program Review. The Gallant Government is trying to identify $500 million to $600 million in savings and revenue in order to eliminate the deficit.
Health Minister Victor Boudreau says the status quo can’t continue because the provincial government is losing out on millions of dollars a year in revenue due to the illegal sale of contraband tobacco and the smuggling of tobacco into New Brunswick from other places.
It’s estimated that a one per cent interruption in the illicit tobacco trade could increase taxes collected by the province by $1 million a year. A dedicated enforcement strategy would be expected to create a greater interruption which could result in up to $5 million in additional annual taxes.
