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Simple economics fuel demand for contraband smokes

Stop Smoking Hypnotist: Supply and demand.Where there is demand, there is supply and vice versa.When it comes to cigarettes, this logic holds firm, as contraband and inexpensive smokes are common place at First Nations reserves.And with subsequent tax hikes on the price of cigarettes, so too are smokers looking for other, cheaper ways of getting their fix.

According to a 2006 survey by Imperial Tobacco Canada, the average price per carton of premium brand cigarettes was $76.58.Of that, the total taxes for both the federal and provincial governments amounted to around 65 per cent of every package of cigarettes. According to Judy Broesch, who regularly buy cigarettes from the Hiawatha First Nation, a carton costs around $30, a far cheaper rate than convenience stores charge.

While the idea behind the tax hike is to deter smokers from buying cigarettes, questions surround the topic as to whether this is actually working, or if it is just pushing people to find other avenues to buy cheap cigarettes.According to Staff Sergeant John Morton from the Bomanville division of the Royal Canadian Mounted Police, First Nation reserves play a large role in feeding the habit of smokers wanting to get a deal.â€œIt’s a supply and demand thing.

Ont. wants Ottawa to drop GST on stop-smoking aids

Quit Smoking Hypnotist: Ontario is calling on the federal government to follow its lead by snuffing out the sales tax on all over-the-counter products designed to help smokers quit. On Monday, all nicotine replacement therapy products, such as nicotine patches, gum, lozenges, inhalers, sprays and tablets, will be exempt from the provincial sales tax.Ontario Health Promotion Minister Jim Watson, who announced last month the province would drop its sales tax on these products, said the federal government should do the same.“I’m hopeful that the federal government will see that this is a good tax cut that they should be involved with,” Watson said in a telephone interview.

A smoker who spends about $300 over 10 weeks on nicotine replacement therapy products would save roughly $24 as a result of the dropped sales tax, Watson said.

‘Frustrated’ McConnell blames Westminster and Iraq for election defeat

Stop Smoking Hypnotist: Jack McConnell has blamed the war in Iraq and turmoil in Westminster for his election defeat in May’s Scottish elections, claiming that matters “were out
side my control” ahead of the poll. In his only full interview following his resignation as Labour leader last week, McConnell admitted he felt “total frustration” during the campaign over his inability to seize the agenda.

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