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US officials seek cracking down cigarette smugglingTrying to cut giant budget deficit, American lawmakers decided to use every possible strategy to stop smuggling and illegal sales of contraband tobacco products. While tobacco taxes are growing with enormous speed and smokers are doing what they can to save every penny they earn during the worst economic recession since the Great Depression in the 1920s, tobacco smuggling is spreading unbelievably fast. Nevertheless, the federal and state officials seek stopping the tobacco traffic in order to collect revenue for cash-stripped states, according to Associated Press report. Such states as Florida, Maryland, New York, Rhode Island, and Virginia decided to establish a joint set of strict regulations to crack down the sales of counterfeit and contraband tobacco products and generate extra money. Studies show that state budgets are short of nearly $5-6 billion annually in lost taxes because of illegal sales of smuggled tobacco products, said Andrew Oven, vice head of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives department of tobacco control. Maryland director of Taxation Department Nora Johnson admitted that the state budget misses millions in lost revenues every year and mentioned that they are willing to make smokers comply with the legislation. As the officials perceive the sin taxes as an easy way to generate additional revenues and avoid cutting the expenses on various state programs, the lawmakers are not simply seeking to stop smuggling but as well have an intention to approve amendments to present ordinances that would oblige online tobacco stores to levy taxes to their untaxed products. Talking about tobacco traffic strategies, authorities suspect criminals, street gangs and even international criminal syndicates. Thus, almost all states are working together with federal enforcement agencies to find and detain criminals. The agency that tracks cigarette sales at convenience shops o ensure compliance with present regulations said that within the past six months it has carried out seizures at nearly 200 shops what is four times more compared to the same term last year. The tobacco taxes that vary from state to state gave a possibility for criminals to buy cigarettes legally in states with low taxes and then sell them in states with higher taxes, producing also fake tax stamps. According to the latest investigation reports, Virginia Police Department and ATF agents arrested two persons on charges in the illegal agreement with undercover ATF agent to exchange counterfeit cigarettes with heroine. The detained men wanted to transport cigarettes to Rhode Island and resell them there. Rhode Island is home to America’s second-highest taxes, making cigarettes cost $8 per pack. |