tag:blogger.com,1999:blog-3585028625507474093.post2120305272867764267..comments2023-10-17T15:56:22.827+01:00Comments on Velvet Glove, Iron Fist: 35,000 tobacco plants seized in Australian raidChristopher Snowdonhttp://www.blogger.com/profile/15963753745009712865noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3585028625507474093.post-31367636087056998462014-03-20T16:36:46.001+00:002014-03-20T16:36:46.001+00:00Australia Losing $1B To Tobacco Black Market, KPMG...Australia Losing $1B To Tobacco Black Market, KPMG Says ...<br /><br /><br />www.law360.com/articles/486755/australia-losing-1b-to-tobacco...<br /><br />Australia is losing AU$1 billion (US$953 million) per year in tobacco excise revenue due to a jump in black ... Australia Losing $1B To Tobacco Black Market, ...<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3585028625507474093.post-38416236608753445602014-03-20T16:34:55.764+00:002014-03-20T16:34:55.764+00:00http://taxfoundation.org/article/cigarette-taxes-a...http://taxfoundation.org/article/cigarette-taxes-and-cigarette-smuggling-state-0<br /><br />Cigarette Taxes and Cigarette Smuggling by State<br /><br />Key Findings<br />•Large differentials in cigarette taxes across states create incentives for black market sales.<br />•Smuggled cigarettes make up substantial portions of cigarette consumption in many states, and greater than 25 percent of consumption in twelve states.<br />•The highest inbound cigarette smuggling rates are in New York (56.9 percent), Arizona (51.5 percent), New Mexico (48.1 percent), Washington (48 percent), and Wisconsin (34.6 percent).<br />•The highest outbound smuggling rates are in New Hampshire (24.2 percent), Wyoming (22.3 percent), Idaho (21.3 percent), Virginia (21.1 percent), and Delaware (20.9 percent).<br />•Cigarette tax rates increased in 30 states and the District of Columbia between 2006 and 2012.<br /><br />Public policies often have unintended consequences that outweigh their benefits. One consequence of high state cigarette tax rates has been increased smuggling as criminals procure discounted packs from low-tax states to sell in high-tax states. Growing cigarette tax differentials have made cigarette smuggling both a national problem and a lucrative criminal enterprise.<br /><br />Each year, scholars at the Mackinac Center for Public Policy, a Michigan think tank, use a statistical analysis of available data to estimate smuggling rates for each state.[1] Their most recent report uses 2012 data and finds that smuggling rates generally rise in states after they adopt large cigarette tax increases. Smuggling rates have dropped in some states, however, often where neighboring states have higher cigarette tax rates. Table 1 shows the data for each state, comparing 2012 and 2006 smuggling rates and tax changes.<br /><br />New York is the highest net importer of smuggled cigarettes, totaling 56.9 percent of the total cigarette market in the state. New York also has the highest state cigarette tax ($4.35 per pack), not counting the local New York City cigarette tax (an additional $1.50 per pack). Smuggling in New York has risen sharply since 2006 (+59 percent), as has the tax rate (+190 percent).<br /><br />Other peer-reviewed studies provide support for these findings.[2] Recently, a study in Tobacco Control examined littered packs of cigarettes in five northeast cities, finding that 58.7 percent of packs did not have proper local stamps. The authors estimated 30.5 to 42.1 percent of packs were trafficked.[3]<br /><br />Smuggling takes many forms: counterfeit state tax stamps, counterfeit versions of legitimate brands, hijacked trucks, or officials turning a blind eye.[4] The study’s authors, LaFaive and Nesbit, cite examples of a Maryland police officer running illicit cigarettes while on duty, a Virginia man hiring a contract killer over a cigarette smuggling dispute, and prison guards caught smuggling cigarettes into prisons. Policy responses have included banning common carrier delivery of cigarettes,[5] greater law enforcement activity on interstate roads,[6] differential tax rates near low-tax jurisdictions,[7] and cracking down on tribal reservations that sell tax-free cigarettes.[8] However, the underlying problem remains: high cigarette taxes that amount to a “price prohibition” of the product in many U.S. states.[9]<br />Anonymousnoreply@blogger.com