Cigarette smuggling on the rise, Mounties say
Last Updated: Friday, May 5, 2006 | 8:36 AM ET
CBC News
Cigarette smuggling through the Akwesasne Mohawk reserve near Cornwall, Ont., has exploded in recent years, the RCMP says, and at least one politician blames rising tobacco taxes.
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"We've busted rings coming from Nova Scotia using Winnebagos," said RCMP Sgt. Michael Harvey.
The motor homes would make the trip twice a week, returning to the Maritimes loaded with illegal cigarettes, he said.
The RCMP say they are making progress, noting the arrests last week of 26 people eastern Ontario with 400 cases of contraband cigarettes and $700,000 in cash.
But police are up against a huge demand for cheap cigarettes.
Cornwall Mayor Phil Poirier says many smokers are turning to the black market as a tax revolt.
"If you go buy a carton of cigarettes legally, they are approximately $70 a carton. If you buy them smuggled, they are approximately $20," he said.
"Now, a couple who each smoke a carton a week? That's a mortgage on a house."
The Canada-U.S. border runs down the middle of the St. Lawrence River at Cornwall, with the Akwesasne reserve straddling Quebec, Ontario and New York.
New factories have sprung up in New York, 10 of them on the Akwesasne reserve. The tribal council insists it's regulating the situation, but only four of the factories have licences.
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