Tobacco trafficking funds crime, terrorism
Virginia – Organized crime has long profited from black-market deals in prohibited or expensively regulated goods ,ranging from bootlegged liquor, to prostitutes, to guns. Organized terrorism has taken a cue from that history. Virginia also is popular with cigarette smugglers because our taxes on tobacco are relatively low. That profit falls into the pockets both of organized crime and of terrorism, says a new State Department report. The same groups that deal in cigarette smuggling also are linked to weapons smuggling and sex trafficking.
The State Department estimates that cigarette smuggling is costing state and local governments $3 billion to $7 billion each year.
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