Purchasing Cheaper Cigarettes
Contraband and Cheaper Cigarettes
Smokers are price sensitive, and may seek ways to purchase cheaper cigarettes, particularly as tobacco taxes increase the overall price of cigarettes. One such source is purchasing contraband cigarettes. Contraband is any tobacco product that does not comply with the provisions of all applicable federal and provincial statutes. This includes importation, stamping, marking, manufacturing, distributing and payment of duties and taxes (vii, p.12). The RCMP has identified the trade in contraband as a serious threat to public safety and health (vi, p.15).The federal government has also recently made contraband a priority issue for tobacco control in Canada, and the Minister of Public Safety created a Task Force on Illicit Tobacco Products in 2008 to deal with the issue(vii).
Some of the sources of purchase reported in the next section may include contraband, where appropriate taxation has been evaded, while others represent the efforts of smokers to legally obtain cheaper cigarettes.
Purchasing Cigarettes Sources
Smokers were asked about various sources of purchase used in the past 6 months (Figure 3.2), and also about the proportion of their cigarettes purchased from each of the sources they had utilized.
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Purchasing from Stores and Discount Cigarettes
The majority of smokers reported having purchased from a store or gas station in the past 6 months. Of those who purchased from a store, most (84.6%) purchased all of their cigarettes from a store.
Purchasing cheaper brands of cigarettes is one way that smokers may minimize costs. Respondents who had purchased from a store were asked what percentage of all the cigarettes bought from a store in the past 6 months were discount brand cigarettes ( brand name cigarettes manufactured by a multinational company and sold at a lower than average price ) and full priced, premium brand cigarettes ( brand name cigarettes manufactured by a multinational company and sold at average or higher than average prices ). Nearly half (48.0%) had purchased a discount brand, most (83.3%) of whom purchased a discount brand for at least half of their cigarettes 31.0% of all those who purchased from a store purchased only discount brands in the past 6 months. On the other hand, 52.0% of all those who purchased from a store purchased only premium cigarettes, with the remainder (17.0%) purchasing a mix of premium and discount brands.
Purchasing From First Nations
Of the 12.9% of smokers who reported purchasing from a reserve, 63.5% reported purchasing at least half of their cigarettes from a reserve, 32.2% purchasing all of their cigarettes there.
Purchasing Smuggled Cigarettes
Of the 1.3% of smokers who reported purchasing cigarettes that may have been smuggled , the majority (75.9%) reported that less than half of the cigarettes they purchased in the past 6 months may have been smuggled. Regarding ease of access for those who had purchased smuggled cigarettes, two thirds (67.6%) said that it was very easy to buy smuggled cigarettes and another 23.9% said it was easy .
Defined in CTUMS as Smuggled cigarettes include purchased cigarettes that were not manufactured on a First Nations Reserve, were not manufactured in Canada, do not contain a government of Canada Health Warning message and do not carry a tax stamp. Legally imported cigarettes are not smuggled cigarettes.
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