A Stronger Smoke-Free Ontario

Ontario has taken new steps to stamp out illegal tobacco, help more people quit smoking and ensure young people don't get addicted.

On June 1, 2011, the Supporting Smoke-Free Ontario by Reducing Contraband Tobacco Act, 2011 passed third reading. It provides new measures to further protect young people from the dangers of cheap, illegal tobacco – marking another major step towards a Smoke-Free Ontario.

The new legislation means:

  • stronger controls over all types of raw leaf tobacco grown in or imported into Ontario
  • new fine levels for possessing illegal cigarettes
  • authority for police officers to seize illegal, unmarked tobacco
  • a marking scheme for fine-cut tobacco, similar to that used on cigarette packaging

To further protect children and youth from the harmful effects of smoking, Ontario will work with educators and young people to keep schools smoke-free and develop youth-led strategies focused on prevention.

Tobacco is the leading cause of preventable death and disease in Ontario, killing 13,000 people a year. That's three times the combined deaths caused by alcohol, drugs, suicide, homicide and car crashes.

"The facts about tobacco use are beyond dispute. It is an epidemic that kills, sickens and burdens health care systems and costs all of us money. I am pleased that several ministries and stakeholders are engaged in this issue and that the government is increasing its investment in the continued fight against tobacco in Ontario. We cannot win a war we don't invest in and, like other public health issues, tobacco control is everyone's business."

Dr. Arlene King, Ontario's Chief Medical Officer of Health

Illegal Tobacco: Still a Problem

The availability of illegal tobacco threatens to undo the government's successes in protecting kids and youth from the dangers of smoking and reducing smoking rates.

Illegal cigarettes can be purchased for as little as a few dollars.

Illegal tobacco also fuels other criminal activity, including the trafficking of drugs, the purchase of illegal weapons and the funding of other illicit activities.

Addressing Illegal Tobacco

In six of the last eight years, Ontario has introduced measures to strengthen enforcement against illegal tobacco.

This includes the Supporting Smoke-Free Ontario by Reducing Contraband Tobacco Act, 2011, which was passed by the Ontario legislature on June 1, 2011.

This legislation provides new tools to reduce illegal tobacco, including:

  • comprehensive controls over all types of raw leaf tobacco grown in and imported into Ontario (i.e., flue-cured, black/dark and burley – partially and fully processed)
  • authority for police officers to seize illegal cigarettes discovered in plain view
  • revised fine levels for possessing illegal cigarettes that better reflect the extent and type of offence committed
  • a marking scheme for fine-cut tobacco to make it easier for law enforcement officers to identify illegal, fine-cut tobacco

This legislation also authorizes the Minister of Finance to enter into arrangements and agreements with First Nations related to administering and enforcing the Tobacco Tax Act on reserves.

Did You Know?

Tobacco-related disease costs Ontario's health care system $1.93 billion in direct health care costs and $5.8 billion in productivity losses each year.

The availability of cheap, illegal tobacco is linked to high youth smoking rates.

Ministry of Finance investigators and inspectors seized 182 million illegal cigarettes, 1.7 million untaxed cigars and 56 million grams of fine cut tobacco between April 1, 2008 and December 31, 2011.

Since March 2006, penalties assessed against those violating the Tobacco Tax Act total over $21.6 million.

What You Need To Know About Illegal Tobacco

Under the Tobacco Tax Act, unless otherwise authorized, it is against the law to buy, possess or distribute any quantity of illegal cigarettes or any other untaxed tobacco product. These products are illegal tobacco.

How to Identify Legal Cigarettes

Legal cigarettes are identified by:

  • Ontario's yellow tear tape:
    Ontario's yellow tear strip: ONTARIO - CANADA DUTY PAID - DROIT ACQUITTÉ
  • the term "ON" printed on the outside of the package, and
  • a purchase price that is more than $47.12 per carton.

Cigarettes sold in clear plastic bags are illegal. Cigarettes sold in packages with tear tape other than Ontario's yellow tear tape are illegal cigarettes, subject to certain limited exceptions.

For example, cigarette packages with peach-coloured "CANADA — DUTY PAID — DROIT ACQUITTÉ" tear tape, or a peach-coloured federal stamp, may be sold at authorized duty-free stores. Also, some on-reserve retailers are authorized to buy, from authorized wholesalers registered under the Tobacco Tax Act, limited quantities of cigarette packages with peach-coloured tear tape or a stamp that are to be sold only on reserves to First Nation consumers who are Indians as defined under the federal Indian Act, for their exclusive use.

Consequences of Breaking the Law

It is an offence under the Tobacco Tax Act to possess any unmarked cigarettes without a permit or authorization to do so. Sanctions include penalty assessments and, if convicted, a person is liable to a fine and, in certain circumstances, imprisonment.

For tobacco retailers

Tobacco retailers must:

  • have a valid tobacco retail dealer's permit or a retail sales tax vendor's permit that was valid on June 30, 2010, or be a ministry-authorized reserve retailer under Ontario's First Nations Cigarette Allocation System
  • purchase tobacco only from Ontario-registered tobacco wholesalers
  • only sell packages of cigarettes with Ontario's yellow tear tape (unless authorized as a reserve retailer by the Ministry of Finance)
    Ontario's yellow tear strip: ONTARIO - CANADA DUTY PAID - DROIT ACQUITTÉ
    (the letters "ON" must also be printed on the outside of the package)
  • not sell cigarettes having another colour of tear tape, packages with no tear tape or cigarettes in clear, plastic bags
  • be aware that provincial and federal taxes add up to at least $47.12 per carton of cigarettes; cartons sold for less than that are almost certainly illegal
  • if authorized by the Ministry of Finance as a reserve retailer located on a reserve, sell cigarettes having a peach-coloured tear tape or stamp only to First Nations consumers for their exclusive use.

Tobacco retailers found selling illegal cigarettes may be subject to penalties, fines, imprisonment, and a prohibition from selling tobacco.

To learn more, read Frequently Asked Questions.

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