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Sunday, April 17, 2011

Violent criminals expand into cigarettes

There is so much illicit money to be made, Penninger said, that some drug and weapon trafficking organizations are adding tobacco to their product lines to boost profits. For example, in low-tax states such as Virginia, where cigarettes cost about $4.50 per pack, smugglers can sell a truckload (typically 800 cases) in New York at $13 per pack. New York is the highest tobacco taxing jurisdiction in the country.

Smuggling costs states and the government about $5 billion, according to U.S. government estimates.

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