From: NACS/The Association for Convenience & Fuel Retailing
A New York Post op-ed piece cites a need for better enforcement of the city’s tobacco laws by addressing cigarette smuggling.
NEW YORK – New York City police commissioner Raymond Kelly wrote an op-ed earlier this week for the New York Post, highlighting the need for the state to better enforce its tobacco laws by addressing cigarette smuggling.
Referencing last week’s indictment of 16 members of a multimillion-dollar cigarette-smuggling ring, Kelly said the illicit proceeds from similar schemes have been used to fund terrorist organizations, including Hamas and Hezbollah.
“Make no mistake: We have a responsibility both to protect the taxpayer and to make certain we are neither targeted nor exploited by terrorists,” Kelly wrote, noting that 46% of cigarette retailers in New York City inspected by the Department of Finance were found to have untaxed cigarettes.
“The lost tax revenue and possible links to organized crimes are not the only concerns. Smuggled cigarettes often are sold at a discount, making these deadly products more accessible to young people and smokers who are trying to quit. Contraband cigarettes also place law-abiding retailers at a competitive disadvantage to retailers selling illegal, untaxed cigarettes at artificially low prices,” Kelly wrote.
Kelly said a bill currently before the council, the Sensible Tobacco Enforcement bill, assesses stiff fines for the sale, possession or concealment of untaxed cigarettes or counterfeit stamps and will help curtail the sale of illegal “tobacco goods.”
Another bill, under consideration by the Legislature, will increase civil and criminal penalties for the possession of counterfeit and untaxed cigarettes and make it easier for officials to seize contraband. “If a store can’t sell cigarettes without New York City stamps, it makes smuggling far less profitable,” Kelly wrote.
“Cigarette smuggling might appear to be a victimless crime, but last week’s arrests illustrate how it is not,” Kelly concluded. “Cracking down on cigarette-tax evasion is vital not only for public health but also for businesses and public safety as well.”
In a related story, New York City has filed a Citizen’s Petition with the U.S. Food and Drug Administration to implement a track-and-trace system to monitor the manufacture and flow of tobacco products from production through sale at retail stores. The system would help police distinguish between legal and illegal points along the chain of distribution, enabling them to better apprehend those responsible for the illegal activity.
