Imperial Tobacco Canada warns Saskatchewan of increase in illegal tobacco

After police officials in Saskatchewan conducted investigations into the illegal tobacco industry in the province, Imperial Tobacco Canada warns of a growing illegal tobacco problem.

In a release, Imperial Tobacco Canada stated recent seizures and declining tobacco tax revenue suggests that Saskatchewan is not immune to western expansion of illegal tobacco and demands “immediate government attention.”

“Saskatchewan has traditionally had one of the lowest rates of illegal tobacco in Canada. However, there is growing evidence the province is falling victim to a major western expansion of the illegal trade. The government will need to move quickly to address this or else it risks ending up in the same situation as Alberta and British Columbia, which now both have an enormous problem,” stated Eric Gagnon, vice-president of Legal & External Affairs at Imperial Tobacco Canada (ITCAN).

“This is serious criminal activity run by organized crime, with the proceeds used to fund other criminal activity.”

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In an email statement to Global News, the province stated they are committed to protecting and serving Saskatchewan’s tax base, including taking measures to address the increase in illegal tobacco distribution observed across Canada.

“Undoubtedly, the sale and distribution of contraband tobacco is a challenging and complex issue. We are actively engaged with other Canadian provinces to address this issue and participate in the Interprovincial Investigation Council, a task force that supports the elimination of illegal tobacco distribution,” stated the Ministry of Finance, who assists in illegal tobacco investigations.

“Additional measures underway include exploring new legislative tools to help drive compliance, sharing information, and continuing to strengthen operational partnerships with law enforcement agencies and industry stakeholders.”

The Saskatchewan RCMP said police executed a search warrant on Sept. 22, 2023, at a residence in Humboldt, which was part of a six-month investigation. Humboldt RCMP located and seized more than 17,000 unstamped cigarettes in the residence.

“An adult male was arrested at the residence,” stated police. “Seventy-four-year-old Joseph John Therres from Humboldt is charged with one count, possession of unstamped tobacco for the purpose of sale, Section 121.1(1), Criminal Code and one count, possession of property obtained by crime under $5,000. Section 354(1)(a), Criminal Code.”

Therres is scheduled to appear in Humboldt Provincial Court on Nov. 20, 2023.

On Aug. 31, 2023, the Saskatchewan Highway Patrol seized over $1 million worth of unstamped cigarettes near Indian Head, Sask.

In July, the Saskatchewan RCMP conducted traffic stops on Highway 11 by Chamberlain, Sask. where one driver had over 10,000 cigarettes in his vehicle.

In early June, the Saskatoon Police Service made the largest seizure of illegal tobacco where almost one million cigarettes were seized, leading to a 59-year-old Saskatoon man facing charges.

Earlier in the year, in a joint enforcement between the Wakaw RCMP and the Saskatchewan Highway Patrol, police seized 100,000 unstamped cigarettes. A 29-year-old man from Prince Albert was charged.