ISSUES WITH PLAIN PACKAGING - ILLICIT TRADE

Lost revenue

The trade in illicit cigarettes robs governments and legitimate businesses of a huge amount of revenue.

Illicit tobacco being destroyed

The trade in illicit cigarettes is estimated to cost governments $40.5 billion annually in lost revenue, according to a report by tobacco control advocate Luk Joossens in August 2009.

• In the UK, tobacco smuggling costs over £3 billion a year in lost revenue.
• The Canadian Government loses approximately C$2 billion a year to illicit cigarettes

The Canadian Convenience Stores Association estimates losses to illicit cigarettes at equivalent to 20-30% of store sales. In a survey conducted by the Association in 2007, approximately 55% of respondents declared themselves as being concerned about the problem and reported a negative impact on their sales.