A large amount of contraband tobacco products totaling more than 306 kilograms has been seized by the Alberta Gaming and Liquor Commission.
The AGLC estimates more than $116,000 in potential tax revenue has been lost.
Contraband cigarettes, flavoured cigars and shisha tobacco, a flavoured product smoked in a hookah, were discovered when a search warrant was executed at Alex's Convenience Store in Edmonton in January.
Two men face criminal charges of fraud over $5,000 and trafficking in contraband tobacco. Under the provincial Tobacco Tax Act, the two face charges for possession of more than 1,000 grams of tobacco.
They are scheduled to appear in Provincial Court on March 16.
Contraband tobacco is a product that doesn't adhere to provincial and federal laws that involve importation, package marking, manufacturing, and the payment of duties and taxes.
Contraband can be recognized by the absence of a red (Alberta) or a peach/light tan (Canada) stamp that says "Duty Paid Canada Droit Acquitte" on the packaging.
Provincial revenue from tobacco taxes was $940 million in 2014-15.