I am once again going to make a few general comments.
It is clear that potential schemes involving contraband tobacco are reviewed regularly. They factor into the equation when the government, through its budget, reassesses the effectiveness of its suite of tax measures and their impact, every year. It strives to find a balance between the excise tax and the pressures associated with contraband.
As for the fine line, it's very tough to wade into that territory. As you know, Canada is a huge country. The tax base from tobacco products is divided among the provinces. Each one has its own taxation rates, which can vary significantly from one market to another. One province might be dealing with specific law enforcement challenges that are not at all present in other parts of the country. My colleagues at the RCMP and Public Safety Canada would no doubt be better-positioned to discuss the issue in much more detail. I will say, though, that, in past years, we have seen specific problems involving counterfeit tobacco product imports. They were coming from China and truly looked like legitimate products that had been stamped in Canada. Of course, the illegal manufacture of tobacco products is a problem in parts of the country that are farther away from the major import ports. Given the wide range of factors that come into play, I will refrain from commenting on what that fine line is.
I can tell you, however, that the measure in the bill is intended to maintain the overall tax burden through the taxation policies being implemented. Given the minimal impact on the tobacco taxes collected, overall, I doubt that this increase would have much of an effect on the contraband situation in the country.