The National Coalition Against Contraband Tobacco’s says a report from the Parliamentary Budget Officer Wednesday shows that an a recently implemented tobacco tax increase won’t increase government revenue but will increase the contraband tobacco market in Canada.

The Coalition’s national spokesperson Gary Grant says the RCMP estimates there are over 175 organized crime groups involved in illicit trade and he suggest the federal government is driving criminal activity in the country.

He says the tax increase drives smokers to illegal cigarettes, “In Ontario alone 1 in 3 cigarettes sold is illegal which directly funds criminal gangs.” Grant says while Ontario is the epicentre of the contraband tobacco market, other provinces such as Manitoba, Quebec and New Brunswick have also seen in a spike criminal activity tied to the sale of illegal cigarettes, to the tune of an estimated $2 billion in lost taxes.