Illegal circulation of tax-free cigarettes surges in S. Korea

The illegal circulation of tax-free cigarettes on the domestic market has surged since the announcement of a government plan to raise prices.The Korea Customs Service (KCS) said Tuesday that it confiscated a record amount of illegally circulated tax-free cigarettes worth 66.4 billion won ($61 million) in the first half of the year, more than the 43.6 billion won confiscated throughout 2013, according to the KCS.Cigarettes produced for the military and exports are exempt from taxation, but those products are increasingly being funneled into the domestic market as the government moves to revise a law to increase the tobacco tax by 2,000 won per pack. A bill is pending in the National Assembly, with the ruling Saenuri Party throwing its weight behind it.

 

http://www.koreatimesus.com/illegal-circulation-of-tax-free-cigarettes-surges-in-s-korea/