News Releases

Media Bulletin - Manitoba

August 11, 2022

Province Advises Contraband Tobacco Products Seized from Multiple Retail Locations in Winnipeg



The Special Investigations Unit (SIU) of Manitoba Finance’s Compliance and Enforcement Division is reporting a significant seizure of contraband cigarettes from multiple retail locations throughout Winnipeg.

In total, 543,255 contraband cigarettes were seized from three adult Winnipeg residents, who are the owners of five convenience stores. Two of the accused have previous convictions for similar offences, while the third currently has charges before the court.

The cigarettes confiscated represent more than $162,977 in potential lost revenue to the Province of Manitoba. The accused adults face a variety of charges under the Tobacco Tax Act, the Tax Administration and Miscellaneous Taxes Act and the Criminal Code.

The retail locations charged include:

  • Bannerman Grocery, 414 Bannerman Ave.;
  • Mom & Dad’s Grocery, 352 Mountain Ave.;
  • A.J. Grocery, 532 Redwood Ave.;
  • Avenue Meats, 595 Selkirk Ave.; and
  • Royal Supermarket, 689 Wellington Ave.

The charges come at the end of Project Diesel, a lengthy investigation into multiple Winnipeg retail locations suspected of possessing and selling illegal cigarettes to adult and youth customers.

For a first-time offence under the tax acts, individuals face fines between $1,000 and $10,000 and/or up to six months imprisonment, as well as a potential triple tax penalty. For subsequent offences, individuals face fines between $10,000 and $50,000 and/or up to 12 months imprisonment, as well as a potential quadruple tax penalty. The offenders also face the suspension of their retail tobacco licences.

The smuggling and sale of illegal cigarettes are not only a tax loss to the citizens of Manitoba, but also pose increased health and fire hazards. Illegal cigarettes are not regulated, may contain harmful ingredients and may lack the self-extinguishing features of legal brands.

The province urges anyone who has information on contraband tobacco to call their local police department or submit tips to the Manitoba Finance Special Investigations Unit at 204-945-1137 or via email at taxation.siutips@gov.mb.ca or to Manitoba Crime Stoppers (toll-free) at 1-800-222-TIPS (8477).

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