Perils of plain packaging publicized
Critics contend that plain packaging has done little to reduce smoking rate in Australia.
On the heels of a consultation on standardized tobacco-products packaging conducted by Canada’s federal government, JTI-Macdonald has launched an awareness campaign to highlight to Canadians and the government the perils inherent in such a move.
‘The online and mainstream media campaign underlines the failed experience from Australia where plain packaging was introduced in 2012 and had unintended consequences (https://www.BothSidesoftheArgument.ca),’ JTI-Macdonald said in a press note issued through Canada Newswire.
‘More specifically, the campaign addresses the potential impact of the measure on Canadians, including:
* the rise in unregulated and untested tobacco products sold by criminal
gangs at discount prices available to minors;
* the tax revenue loss due to the surge in illegal tobacco availability
and sale; and
* the domino effect on fast food, sugary drinks and alcohol.’
JTI-Macdonald said that according to the Royal Canadian Mounted Police (RCMP), 175 organized crime groups already sell illegal tobacco across Canada and use the profits to fund their other crimes such as weapons and drugs trafficking (Superintendent Joe Oliver, director general, border integrity, RCMP, House of Commons Standing Committee on Public Safety, April 27 2010.).
The company said that almost 20 percent of the Canadian tobacco market was already illegal, which deprived governments of $1.6 billion in tax revenue each year (Christian Leuprecht, Macdonald-Laurier Institute Publication, Smoking Gun: Strategic Containment of Contraband Tobacco and Cigarette Trafficking in Canada, March 2016.).
And it said that after Australia had implemented standardized packaging, illegal sales rose by 21 percent (KPMG, Illicit Tobacco in Australia: 2015 Full Year Report, April 2016.).
‘If the same happens here, it will cost Canadian taxpayers an additional $330 million for a total of almost $2 billion per year,’ the company warned.
‘JTI commissioned Forum Research to conduct a poll to understand Canadians’ views on the plain packaging proposal and consultation process. Forum found that nine out of 10 Canadians had never even heard about the public consultation and most do not think that plain packaging is necessary or a good use of government resources.’
“Plain packaging simply doesn’t work and will make it easier for criminals to sell cheap, illegal tobacco,” says Igor Dzaja, general manager of JTI-Macdonald. “Canadians expect policy that is evidence-based and that will achieve its aims, not regulation that is rushed through without reliable evidence it will work or consideration of the negative consequences, including for other consumer goods businesses who are bound to be next.”