The column by Kevin Gaudet ( "Hiking taxes on tobacco not good plan," Aug. 10) is replete with misinformation. Raising tobacco taxes does not cost governments money. Tobacco tax hikes improve health, save lives and reduce health care costs by reducing tobacco use, while at the same time increasing government revenues. High taxes were not responsible for the contraband problem in the 1990s -- Canada's three largest tobacco manufacturers were. The companies recently pled guilty to smuggling offences in the 1990s and agreed to pay financial penalties totalling more than $1.6 billion. The current contraband crisis is likewise not due to high taxes. Contraband flourishes where there is opportunity.
In the present situation, it is government reluctance to address the elephant in the room -the native reserves at the centre of the illegal manufacturing, distribution, and sales operations -that is allowing the black market to thrive.
Implementing effective solutions to the contraband problem requires governments heed the facts and not the misinformation being spread by Gaudet and others, in particular those who stand to profit from increased "legal" cigarette sales.
Melodie Tilson, Director of Policy Non-Smokers' Rights Association