Imperial Tobacco is shocked by Ontario lawsuit

Imperial Tobacco Co., the largest tobacco Canada's largest tobacco company in Canada and manufacturer of du Maurier and Player's is reportedly staggered by the lawsuit the Ontario province Attorney General filled against legalized tobacco industry at the time when almost a half of all tobacco products selling across the province is smuggled.

According to James Rutledge, senior attorney at Imperial Tobacco Canada, the company could not believe that the Ontario officials, who have been cooperating with tobacco industry for half a century, would take taxpayers’ money to file a lawsuit against legal industry rather than try to crack down the black-market, which has a 50 percent share in the local tobacco market.

Latest researches have demonstrated that the enormous rise of contraband cigarette sales in Ontario contributed to the end of the drop in smoking rates across the province, registered during thirty years in a row, and even showed the increase in teenage smoking rates.

Imperial Tobacco’s attorney mentioned that he had no idea why Ontario lawmakers have not been prosecuting the smugglers of untaxed cigarettes with the same fervor as they have showed against constantly declining legal market.

In submitting the action against tobacco industry, the Ontario officials may attempt to convince the electorate that they are caring about the public health, but in fact decades of legal proceedings against tobacco industry do nothing in comparison to the lack of any measures taken by those officials to eliminate the black-market.

The Ontario government, as well as the governments of other provinces has been aware of health consequences related to smoking for years. And it will spend millions suing legally operating cigarette manufacturers in order to gain a larger share of their revenues.

James Rutledge admitted that Imperial Tobacco Canada has been producing a still legal product and has been due to pay huge taxes. From the start of 2009, the Ontario budget received at least $1 billion in excise taxes on tobacco products.

He added that the government would continue receiving revenues from tobacco industry and with that hypocritical actions the officials showed their greed and wish to gram an even higher share, instead of taking care of their primary obligations, that is, cracking down the illegal market, which provides Ontario teenagers with cheap cigarettes.

And finally, Imperial Tobacco attorney said they would use every possible evidence and effort to defend against the Ontario government’s lawsuit.

According to a report carried out by Ontario Auditor General in 2008, the province was stripped of more than $500 million in lost taxes because of contraband; while Imperial Tobacco states that the sum is close to $1 billion currently. Ontario tops the list of the highest rates of smuggled tobacco products in the world; leaving behind such countries like Pakistan and Nigeria.