Cigarette tax hike unlikely
The illicit cigarette trade is evolving in Virginia as criminals obtain business licenses and open fronts for trafficking in order to move millions of dollars in untaxed cigarettes out of Virginia for illegal resale in the Northeast. Competition among illegal dealers is spawning a wide array of other crimes, ranging from credit card fraud to armed robberies to financing terrorism.
Now, the growing trafficking trade has fueled a political debate over how to address the problem without hurting the tobacco industry, which employs thousands in Virginia and has a statewide economic impact of more than $1 billion annually.
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