4 ms·
Sure but be careful with the price increases. At some point, bootlegging/smuggling becomes worthwhile. Happened with cigarettes in Canada (organized by the toba
by passwordoops 4y ago
Sure but be careful with the price increases. At some point, bootlegging/smuggling becomes worthwhile. Happened with cigarettes in Canada (organized by the tobacco industry):
https://www.cbc.ca/news/canada/tobacco-firms-to-pay-550m-over-smuggling-1.902510 https://www.cbc.ca/news/canada/tobacco-firms-to-pay-550m-ove...
- geodel 4y agoNo true scotsman will bootleg.
- triyambakam 4y agoWhy not? I'm ignorant to Scottish culture
- passwordoops 4y agoNow that you mention it, the price increase might only be impacting 19-year-old American backpackers
- red-iron-pine 4y agoHeard much the same about weed; often cheaper to buy from a local, uh, "specialist" than get nailed for higher taxes at retailers. 20 years ago your local specialist was had a lot of risk, too. Cops, guns, general shadiness, etc. Now most cops DGAF for anything under giant quantities, and even then it's a regulatory thing, so they're not tracking down the local weedman. No risk, and better prices.
- mpsprd 4y agoTobacco in Canada is a complex subject. While I agree the infamously high prices of cigarettes in Canada go into play, I would argue that tax exempt cigarettes quotas in reserves[0] and the overall lack of oversight in Reserves creates a perfect haven for contraband, distribution of tax-free cigarettes and "indian smokes". its sad how the Indian Act is still in effect today and how politically impossible the situation is. I think that countries without these huge loopholes might see less problems from bootlegging as we see here. 0:https://www.ontario.ca/document/tobacco-tax/first-nations-cigarette-allocation-system https://www.ontario.ca/document/tobacco-tax/first-nations-ci...
- somethoughts 4y agoDon't really have any data to base this thought on, but it seems like there could be a (positive?) feedback loop - at least from the standpoint of legal players within a heavily taxed industry - where if high taxes were then used to prevent illegal players (bootleggers/smuggling) from entering the market of enforcing the existing laws. That way instead of general tax payers funding enforcement, it's the direct beneficiaries of the enforcement who are funding the effort. And they can decide how much they want to tax themselves.