BRANTFORD - The trail of contraband cigarettes often leads right to Ontario€™s Six Nations Indian reservation, which has a robust trade of illegal tobacco, the Brantford Expositor reports. "Yes, the contraband tobacco trade is alive and well on Six Nations," said Gary Grant, spokesperson for the National Coalition Against Contraband Tobacco.

With the law not requiring taxes paid on cigarettes bought and used on the reserve, the area surrounding the Six Nations has become a hotbed of illegal cigarette activity. While First Nation sellers are not supposed to make sure the cigarettes are being smoked on reserve land, "It's a convenient excuse to use if someone comes to load up a big truck with cigarettes that are clearly not for the reserve," said Grant.

The Royal Canadian Mounted Police know of around 50 illegal manufacturers on Canada€™s reserves, which harms the Six Nation€™s Grand River Enterprises, which does things according to the law. "Sure some [First Nation cigarette makers] pay their taxes but then you have 50 more that are churning out millions of contraband cigarettes without any regulation or government oversight," said Grant.

Grant estimates contraband cigarettes cost the tax system around $2 billion, not to mention the significant loss to legitimate retailers. The coalition wants the government and First Nation representatives to work together to put illegal plants out of business.

The National Coalition Against Contraband Tobacco includes the Canadian Chamber of Commerce, convenience store owners, tobacco manufacturers and Toronto Crime Stoppers. Communities in Ontario are asking for help to stop the sale of contraband tobacco.