
Report: High cigarette tax fuels black market in state
PHOENIX — A cigarette tax higher than neighboring states and cheaper prices on American Indian reservations have helped fuel a growing a black market for cigarettes in Arizona, according a study by a Washington, D.C., think tank. The Tax Foundation, a nonpartisan group that advocates for transparent and broad-based taxation, estimated that smuggled cigarettes made up 51.5 percent of Arizona’s cigarette consumption in 2012. While Arizona taxes cigarettes at $2 per pack, the taxes in neighboring states range from 80 cents per pack in Nevada to $1.66 per pack in New Mexico. American Indian reservations also are less-expensive sources of cigarettes. “All this works in concert to make it a very profitable market,” said Scott Drenkard, economist at the Tax Foundation. Arizona’s estimated percentage of smuggled cigarettes ranked second in the report to 56.9 percent in New York, which had the nation’s the highest tax per pack at $4.35.
Related Posts
Police seize counterfeit brand-name products in Southern Taiwan
KAOHSIUNG - More than 6,000 pieces of counterfeit brand-name clothing and...
Karnataka: Bundles of Fake Notes Worth ₹14 Crore Seized from Vacant House
Karwar: In a curious case that has raised eyebrows, police in Dandeli town of...
Bulgarian tobacco firm to halt exports to Middle East after smuggling claims
Bulgarian tobacco company Bulgartabac said it would halt sales to the Middle East...
EU tobacco deal needs thorough update if renewed
A lot has happened since 9 July 2004, when the European Commission signed what it...