Ontario Businessmen - want government to crack down on illegal cigarettes..

March 25, 2009 - The Ontario Korean Businessman's Association (OKBA -represents 2,500 business owners in Ontario) is calling on the Federal Government to move immediately to crack down on the illegal cigarette trade. Jong Sil (John) Yoon, OKBA President - "Many of our stores are seeing reductions of 50% or more in their business because of the illegal trade. Consumers who used to come in to buy cigarettes would usually pick up other items at the same time. We are losing those sales because those consumers are now buying their cigarettes in a back alley or from the trunk of a car." Members of the OKBA were in Ottawa for meetings with Members of Parliament to discuss their concerns about the impact of the illegal trade on the future of their business.

Illegal cigarettes are sold for as little as $5-6 for 200, whereas the same number of legal cigarettes costs upwards of $70, putting law abiding business owners at a severe competitive disadvantage. "Purchases of illegal tobacco in Ontario have grown from 23% of the market in 2006, to 32% in 2007, to almost 50% today. How much market share can organized crime control before someone takes notice?" asked Yoon.

The OKBA expressed frustration that the only government action on tobacco sales involves ever greater restrictions on the sale of legal tobacco products in their stores. Illegal cigarettes are sold for as little as $5-6 for 200, whereas the same number of legal cigarettes costs upwards of $70, putting law abiding business owners at a severe competitive disadvantage.

"Purchases of illegal tobacco in Ontario have grown from 23% of the market in 2006, to 32% in 2007, to almost 50% today. How much market share can organized crime control before someone takes notice?" asked Yoon.

The OKBA expressed frustration that the only government action on tobacco sales involves ever greater restrictions on the sale of legal tobacco products in their stores. "We abide by all the rules and regulations, whether they deal with advertising, display bans, or tax collection. We do so at a significant cost that comes directly out of our bottom line, and in some cases, involves a redesign of our stores. We absorb these costs because it is the right thing to do, but wonder why the government imposes these additional costs on our operations while illegal product flows into our communities without any regulatory oversight or taxation," stated Yoon.

Reference: Ontario Korean Businessman's Association Calls for Immediate Government Action on Illegal Tobacco, CNW Group, 3/25/2009.

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