Native Smokes and Tobacco Taxation in Canada
In Canada, native smokes are popular among smokers because of their distinctive taste profiles and cultural significance. These cigarettes are manufactured by First Nations tribe-owned companies and offer a better quality of smoke at lower prices than traditional brands. In addition, purchasing native smokes supports the local communities and helps them to succeed economically.
But critics point out that these indigenous-owned businesses also undermine provincial tobacco taxation policies by selling cigarettes at below-tax prices on reserves, and that the profits generated by the cigarette business are not fully remitted to the governments that collect tobacco taxes. In fact, a court case involving the Rainbow Tobacco factory in Hobbema, Alberta, is currently highlighting this issue. The CEO of the company claims that he is not liable for the province’s tobacco tax because the federal Indian Act stipulates that the personal property of Status Indians and bands situated on a reserve cannot be taxed (Rainbow Tobacco, 2018).
Seeking Retailers: Who Sells Native Cigarettes Near Me
This study benefited from a unique longitudinal data set that allowed for analysis of trends over time for the same group of survey participants across two different Canadian provinces where the use of contraband tobacco is most prevalent. The statistical analyses used weighted logistic regression to estimate the adjusted percentage of smokers who reported that they had last purchased cigarettes from a First Nations reserve or that they were likely smuggled, by province and wave. A significant temporal trend was observed from 2004 to 2007-2008, with a subsequent decline. The results suggest that policymakers should consider ways to limit access to low- and untaxed cigarettes on reserves for price-sensitive smokers.