A study from the Fraser Institute states,

It has been estimated that contraband tobacco makes up roughly 30% of the total Canadian tobacco market. In 2009, the RCMP seized a record high of 975,000 cartons of contraband cigarettes. Key factors fueling the contraband trade include relatively high and rising tobacco excise taxes, the inability of law enforcement to impede tobacco smuggling, Aboriginal autonomy in taxation and on-reserve law enforcement, and the erroneous perception that lawful and contraband tobacco are close substitutes.


The complete study is attached below.