Cabinet is unsure of the scope of tobacco smuggling nationwide, according to a report to Parliament. Manufacturers have estimated bootleg cigarettes are worth billions in lost tax revenue.

“The excise reporting gap was estimated to be on average $400 million of federal excise revenue for the tax years 2014 to 2018,” cabinet wrote in an Inquiry Of Ministry tabled in the Commons. However the $400 million figure included tax revenue lost to contraband of all kinds.

Figures were sought by Conservative MP Philip Lawrence (Northumberland-Peterborough South, Ont.) who asked, “How much does the government collect in tobacco taxes annually and what is the amount of federal tax revenue that is lost from the sale of illegal, untaxed tobacco?”

The Canada Revenue Agency said it collected $1,820,138,619 in tobacco taxes last year. There was no estimate of tax revenue lost to smugglers.

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