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='''Unintended Consequences - From Black Markets to Deals With Big Tobacco'''= <!--T:70--> | ='''Unintended Consequences - From Black Markets to Deals With Big Tobacco'''= <!--T:70--> | ||
===2021: Article: [https://coloradosun.com/2021/01/05/proposition-ee-jared-polis-colorado-negotiations/ Emails show negotiations involving Colorado governor, cigarette giant that led to tobacco tax hike]=== <!--T:71--> | ===2021: Article: [https://coloradosun.com/2021/01/05/proposition-ee-jared-polis-colorado-negotiations/ Emails show negotiations involving Colorado governor, cigarette giant that led to tobacco tax hike]=== <!--T:71--> | ||
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*The emails obtained by The Sun about the 2020 legislation, including one labeled as a “draft term sheet” and marked “highly confidential,” show Altria was negotiating the measure with Polis and health groups. | *The emails obtained by The Sun about the 2020 legislation, including one labeled as a “draft term sheet” and marked “highly confidential,” show Altria was negotiating the measure with Polis and health groups. | ||
*While Proposition EE raises taxes on most tobacco and nicotine products in Colorado, it actually slashes them for so-called modified-risk tobacco products. Altria sees those products, which are part its IQOS system, as its future. Vaping shops objected to the MRTP discount, saying they lack the resources to seek an MRTP designation for their merchandise from federal regulators and that Altria would be given another market advantage. | *While Proposition EE raises taxes on most tobacco and nicotine products in Colorado, it actually slashes them for so-called modified-risk tobacco products. Altria sees those products, which are part its IQOS system, as its future. Vaping shops objected to the MRTP discount, saying they lack the resources to seek an MRTP designation for their merchandise from federal regulators and that Altria would be given another market advantage. | ||
===2021: Article: [https://www.smh.com.au/national/western-australia/black-market-cigarettes-a-growing-boom-trade-in-wa-warns-ex-top-border-cop-20210121-p56vzf.html?fbclid=IwAR2sQ8gZjcuLHXznvCq5_xxXKKly6h74bDrHyOtQ9iYEhCJtj-xly-znrys Black market cigarettes a growing boom trade in Western Australia, warns ex-top border cop]=== <!--T:73--> | ===2021: Article: [https://www.smh.com.au/national/western-australia/black-market-cigarettes-a-growing-boom-trade-in-wa-warns-ex-top-border-cop-20210121-p56vzf.html?fbclid=IwAR2sQ8gZjcuLHXznvCq5_xxXKKly6h74bDrHyOtQ9iYEhCJtj-xly-znrys Black market cigarettes a growing boom trade in Western Australia, warns ex-top border cop]=== <!--T:73--> | ||
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*The founder of Border Force's illegal tobacco squad says one in five cigarettes smoked in Australia is illegal and demand has spawned a smuggling trade worth hundreds of millions of dollars each year, with a recent record-breaking case in Western Australia. | *The founder of Border Force's illegal tobacco squad says one in five cigarettes smoked in Australia is illegal and demand has spawned a smuggling trade worth hundreds of millions of dollars each year, with a recent record-breaking case in Western Australia. | ||
* the black market for illegal tobacco – imported mainly from Asia and the Middle East – has grown, with the ATO estimating about $650 million in potential tobacco excise revenue was lost in 2017-18. | * the black market for illegal tobacco – imported mainly from Asia and the Middle East – has grown, with the ATO estimating about $650 million in potential tobacco excise revenue was lost in 2017-18. | ||
===2021: Article: [https://edmonton.ctvnews.ca/man-receives-100k-fine-after-aglc-seized-nearly-6-700-pounds-of-contraband-tobacco-1.5364849 Man receives $100k fine after AGLC seized nearly 6,700 pounds of contraband tobacco]=== <!--T:75--> | ===2021: Article: [https://edmonton.ctvnews.ca/man-receives-100k-fine-after-aglc-seized-nearly-6-700-pounds-of-contraband-tobacco-1.5364849 Man receives $100k fine after AGLC seized nearly 6,700 pounds of contraband tobacco]=== <!--T:75--> | ||
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*The potential lost tax revenue of the products was estimated by Alberta Gaming, Liquor and Cannabis (AGLC) to be more than $972,000. | *The potential lost tax revenue of the products was estimated by Alberta Gaming, Liquor and Cannabis (AGLC) to be more than $972,000. | ||
===2017: Article: [https://www.stltoday.com/news/local/crime-and-courts/second-illinois-man-charged-with-using-fake-business-to-buy/article_70009b80-513d-52bb-ba1d-5685d2b2070c.html Second Illinois man charged with using fake business to buy and sell $3M in tax-exempt cigarettes]=== <!--T:77--> | ===2017: Article: [https://www.stltoday.com/news/local/crime-and-courts/second-illinois-man-charged-with-using-fake-business-to-buy/article_70009b80-513d-52bb-ba1d-5685d2b2070c.html Second Illinois man charged with using fake business to buy and sell $3M in tax-exempt cigarettes]=== <!--T:77--> | ||
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*Most of the cigarettes Khatib bought were allegedly sold in Chicago, where the state excise tax is $1.98 per pack compared to 17 cents per pack in Missouri. Khatib and Qaddoumi allegedly kept the inflated profits. | *Most of the cigarettes Khatib bought were allegedly sold in Chicago, where the state excise tax is $1.98 per pack compared to 17 cents per pack in Missouri. Khatib and Qaddoumi allegedly kept the inflated profits. | ||
===2017: Article: [https://www.stltoday.com/news/local/crime-and-courts/women-allegedly-bought-up-cigarettes-in-low-tax-missouri-to/article_54dd41be-8d5a-599e-990b-1770d43c148a.html?fbclid=IwAR2tsMmIMMwIX4GbWHQFWoJkSPP4gmbtzN5oQ28C5M_lPUV5s8U0f0MGM2o Women allegedly bought up cigarettes in low-tax Missouri to sell in high-tax New York]=== <!--T:79--> | ===2017: Article: [https://www.stltoday.com/news/local/crime-and-courts/women-allegedly-bought-up-cigarettes-in-low-tax-missouri-to/article_54dd41be-8d5a-599e-990b-1770d43c148a.html?fbclid=IwAR2tsMmIMMwIX4GbWHQFWoJkSPP4gmbtzN5oQ28C5M_lPUV5s8U0f0MGM2o Women allegedly bought up cigarettes in low-tax Missouri to sell in high-tax New York]=== <!--T:79--> | ||
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*The women admitted they had driven around the St. Louis area in a rented car buying them up [160 cartons of cigarettes], with plans to sell them back in New York. In addition to the recovered cigarette cartons, police found about two dozen fake credit cards that the women apparently used to buy them. | *The women admitted they had driven around the St. Louis area in a rented car buying them up [160 cartons of cigarettes], with plans to sell them back in New York. In addition to the recovered cigarette cartons, police found about two dozen fake credit cards that the women apparently used to buy them. | ||
===2015: Report: [https://www.nap.edu/catalog/19016/understanding-the-us-illicit-tobacco-market-characteristics-policy-context-and Understanding the U.S. Illicit Tobacco Market]=== <!--T:81--> | ===2015: Report: [https://www.nap.edu/catalog/19016/understanding-the-us-illicit-tobacco-market-characteristics-policy-context-and Understanding the U.S. Illicit Tobacco Market]=== <!--T:81--> | ||
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*[https://www.nap.edu/login.php?record_id=19016&page=https%3A%2F%2Fwww.nap.edu%2Fdownload%2F19016 PDF version] | *[https://www.nap.edu/login.php?record_id=19016&page=https%3A%2F%2Fwww.nap.edu%2Fdownload%2F19016 PDF version] | ||
*Citation: National Research Council. 2015. Understanding the U.S. Illicit Tobacco Market: Characteristics, Policy Context, and Lessons from International Experiences. Washington, DC: The National Academies Press. https://doi.org/10.17226/19016. | *Citation: National Research Council. 2015. Understanding the U.S. Illicit Tobacco Market: Characteristics, Policy Context, and Lessons from International Experiences. Washington, DC: The National Academies Press. https://doi.org/10.17226/19016. | ||
===2013: Article: [https://www.seattlebusinessmag.com/blog/cigarette-smuggling-makes-wa-tax-revenue-go-smoke Cigarette smuggling makes WA tax revenue go up in smoke]=== <!--T:83--> | ===2013: Article: [https://www.seattlebusinessmag.com/blog/cigarette-smuggling-makes-wa-tax-revenue-go-smoke Cigarette smuggling makes WA tax revenue go up in smoke]=== <!--T:83--> | ||
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*Washington’s Department of Revenue estimates the state lost about $376 million in tax revenue in 2012 to cigarette tax evasion. An estimated 35 percent of the cigarettes in Washington are contraband. | *Washington’s Department of Revenue estimates the state lost about $376 million in tax revenue in 2012 to cigarette tax evasion. An estimated 35 percent of the cigarettes in Washington are contraband. | ||
='''See Also:'''= <!--T:85--> | ='''See Also:'''= <!--T:85--> | ||
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