
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
Illegal cosmetic products and supplements seized in Valenzuela raid
Agents of the Bureau of Customs seized imported cosmetic products and supplements...
Operation Team Player nets more than $25,000 worth of fake goods
The 2015 Bridgestone NHL Winter Classic netted a win not only for the Washington...
U.S. Customs and Border Protection seize $83k worth of counterfeit designer products
The U.S. Customs and Border Protection Agency along with the Port of New Orleans...
Illicit liquor worth Rs 21L seized in Hapur as UP cracks whip against smuggling
Uttar Pradesh’s Hapur police seized a shipment of illicit liquor worth Rs 21 lakh...


