Tobacco.org

EDITORIAL: Stamp Act: Will this really stop cigarette smuggling rings? 

With low prices and a still-tiny tax on cigarettes, North Carolina is a major source for smuggled cigarettes that find their way to high-tax states like New York. . . .

But applying stamps costs money. Machines that do the stamping cost $80,000 each; wholesalers aren't eager to absorb that cost, especially in a recession. Given the profits in the underground smokes, we wouldn't be surprised to find the smugglers are also excellent stamp counterfeiters too.

In a still-faltering economy, we'd suggest that lawmakers be careful on this one. There needs to be really strong evidence that the stamps will crack the back of smuggling operations before even more costs are imposed on businesses.

Jump to full article »