Dolynny asks for single tobacco wholesaler to prevent tax evasion

February 21, 2012

Yellowknife, N.W.T. - The GNWT's Department of Finance has found loopholes in the collection of tobacco taxes in the territory and one MLA has a suggestion on how to fix it.

Range Lake's Daryl Dolynny is floating the idea of having a single-source distributor based in the NWT to stop the flow of cigarettes and other tobacco products from unauthorized dealers in the south, which has already happened on more than one occasion, according to finance minister Michael Miltenberger.

Dolynny said the single-source idea is the best one out there, "I think it a wise move on behalf of the GNWT and I think it is also a smart business decision. So I guess the question is what is holding the minister back from considering this solution so we can put accountability and public trust back into the system?"

Miltenberger said there are still plenty of questions about the system as a whole

"Is the issue the wholesalers on the wholesale side, and setting up a single wholesaler, or is it on the retail side which is I believe where the problem is, " said Miltenberger, "While we can have a good system like most laws in the country, which is why we have jails and police, if people wants to try to circumvent the system, as they do with tobacco, there are many ways to try to do that."

An audit revealed that some small retailers had been buying cigarettes from an unauthorized dealer in Alberta to avoid paying higher taxes.

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