An investigation led by Alberta Gaming Liquor and Cannabis’s (AGLC) Tobacco Enforcement Unit with the assistance of Edmonton Police Service led to the seizure of 36,000 cartons of contraband cigarettes with an approximate retail value of $6.7 million. The total provincial tax avoidance is nearly $2.2 million.
A month-long investigation into a contraband trafficking group led to a search warrant at a commercial property in northwest Edmonton.
The investigation is still ongoing and criminal charges are pending.
“Contraband tobacco investigations such as these demonstrate AGLC’s continued mandate to address illegal tobacco and the harms they incur on the health and well-being for Albertans. We will continue to work with our provincial and national partners to curb the rise of illegal tobacco and help keep our communities safe and thriving.”
Kandice Machado, Chief Executive Officer, AGLC
To combat the growing prevalence of contraband tobacco in Alberta, Budget 2025 allocated $1.3 million to add 10 officers to AGLC’s Tobacco Enforcement Unit doubling the size of the current unit. In addition to increasing the number of officers, the Alberta government intends to introduce legislation for new administrative penalties to increase the financial consequences of participating in contraband activities, as well as supporting enhanced data collection and enforcement of contraband seizures.
“Our government has made a firm commitment in this year’s budget to crack down on illegal tobacco, and today’s successful $6.7 million seizure by AGLC shows that our efforts are working. I’m proud to see AGLC taking decisive action to enforce our laws and protect both consumers and businesses from the harms of the illicit tobacco trade. This is just the beginning, and we will continue to take strong measures to combat contraband tobacco in Alberta.”
Dale Nally, Minister of Service Alberta and Red Tape Reduction
Illegally manufactured products also pose public health and safety risks as they lack regulatory controls and inspections oversight. AGLC and its partners are committed to a coordinated contraband tobacco enforcement program in Alberta to crack down on groups and individuals engaged in illegal activities.
Contraband tobacco:
is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes;
comes from four main sources: illegal manufacturers, counterfeits, tax-exempt diversions and resale of stolen legal tobacco; and
can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the “DUTY PAID CANADA DROIT ACQUITTÉ” on packages of cigarettes and cigars or pouches of tobacco.
Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522. If you wish to remain anonymous, please contact Crime Stoppers at 1-800-222-TIPS (8477).
Under a Memorandum of Understanding with Alberta Treasury Board and Finance, AGLC enforces the Tobacco Tax Act and conducts criminal investigations related to the possession, distribution and trafficking of contraband tobacco products. In 2023-24, provincial revenue from tobacco taxes was approximately $449 million.
For more information on contraband tobacco in Alberta, visit aglc.ca/contraband-tobacco.
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