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Date: November 25, 2024 Mon
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27 results foundAuthor: John, Shoba Title: Enforcement of Tobacco Control Policies: Global Best Practices Summary: The tobacco epidemic is one of the major public health threats facing India today, with one million deaths predicted from tobacco-related illnesses by 2010. Comprehensive tobacco control policies and programme are required to rein in this epidemic. The Government of India has already taken several steps to address the challenges caused by tobacco use. The Cigarettes and Other Tobacco Products Act, 2003 is a landmark policy effort in this direction. However, the enforcement and compliance with the law at the national and sub-national levels need to be undertaken in a concerted manner to achieve effective implementation. This report presents international best practices in the implementation of evidence-based tobacco control measures and seeks to identify elements for effective policy enforcement that are applicable to India. The report focuses on global enforcement practices for four tobacco control measures that are significant to the implementation of the Indian tobacco control law: bans on tobacco advertising, promotion and sponsorship; bans on smoking in public and workplaces; packaging and labeling policies; and regulation of youth access to tobacco. Details: Munbai, India: Ministry of Health and Family Welfare, 2008. 105p. Source: Internet Resource: Accessed November 5, 2011 at: http://www.healthbridge.ca/Enforfement%20PDF.pdf Year: 2008 Country: International URL: http://www.healthbridge.ca/Enforfement%20PDF.pdf Shelf Number: 123232 Keywords: CigarettesIllicit TobaccoTobacco Control |
Author: Chiou, Lesley Title: Crossing the Line: The Effect of Cross Border Cigarette Sales on State Excise Tax Revenues Summary: Differences in excise tax rates across jurisdictions create incentives for consumers to cross the border and purchase in lower-tax jurisdictions. This paper introduces a discrete choice model to examine tax avoidance and state border-crossing in the market for cigarettes. We exploit a rich dataset of consumer location choices and demographics to estimate a consumer’s tradeoff between distance and price when choosing a location to maximize utility. Using the estimates from our location and demand models, we reconsider a recent public policy issue among states and simulate tax avoidance under alternative cigarette excise tax levels. Details: Cambridge, MA: John F. Kennedy School of Government, Harvard University., 2008. 30p. Source: Internet Resource: Accessed May 14, 2012 at: http://www.hks.harvard.edu/fs/emuehle/Research%20WP/Chiou%20and%20Muehlegger_Feb08.pdf Year: 2008 Country: United States URL: http://www.hks.harvard.edu/fs/emuehle/Research%20WP/Chiou%20and%20Muehlegger_Feb08.pdf Shelf Number: 125264 Keywords: CigarettesTax EvasionTobacco Products |
Author: Great Britain HM Revenue and Customs Title: Tackling Tobacco Smuggling–building on our success Summary: The Government believes that tobacco smuggling must be tackled head on. Tobacco fraud costs taxpayers over £2 billion a year, depriving the general public of revenue to fund vital public services that support us all. The availability of illegal tobacco products undermines public health objectives and impacts on the health of both individuals and wider communities; circumventing health labelling requirements and age of sale restrictions. Since Her Majesty’s Revenue and Customs’ (HMRC) “Tackling Tobacco Smuggling” Strategy was first introduced in 2000 the size of the illicit cigarette market has been cut by almost half with more than 20 billion cigarettes and over 2,700 tonnes of hand-rolling tobacco seized. There have been more than 3300 criminal prosecutions for tobacco offences following action by our officers. The smuggling of cigarettes and hand-rolling tobacco is also a key business for organised criminal gangs who use the proceeds of this crime to fund the smuggling of drugs, weapons and also human beings. It harms the overwhelming majority of law-abiding businesses who sell tobacco products legally, diverting revenues from retailers all over the country. This Government is committed to stepping up action to deal with this problem and “Tackling Tobacco Smuggling –building on our success” shows how HMRC with the support of UK Border Agency will work together to ensure that those who think that this is a quick, easy and above all profitable crime are targeted, tackled and punished. Details: London: HM Revenue & Customs and the UK Border Agency, 2011. 18p. Source: Internet Resource: Accessed June 18, 2013 at: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_MiscellaneousReports&propertyType=document&columns=1&id=HMCE_PROD1_031246 Year: 2011 Country: United Kingdom URL: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_MiscellaneousReports&propertyType=document&columns=1&id=HMCE_PROD1_031246 Shelf Number: 129011 Keywords: Border SecurityCigarettesIllicit TradeOrganized CrimeTobacco Smuggling (U.K.) |
Author: Calderoni, Francesco Title: The Factbook on the Illicit Trade in Tobacco Products 5 - Germany Summary: This report is part of the project the Factbook on the Illicit Trade in Tobacco Products (henceforth ITTP). The project has been developed by Transcrime after the Round Table on Proofing EU Regulation against the Illicit Trade in Tobacco Products hosted by Universite Cattolica of Milan, on 5 May 2011. During the Round Table, participants (researchers and policymakers with experience in the field of the illicit trade in tobacco products) agreed on a research agenda concerning the ITTP (Transcrime 2011b). Items 3 and 6 of the research agenda focused on the need for better analysis of the tobacco market taking account of its dual nature (i.e. legal and illicit) and on how licit and illicit markets vary across different countries and regions. Given these considerations, Transcrime has developed the Factbook on the ITTP, a multi-annual research plan providing detailed analyses of the ITTP and of its relations with the legal market and other socio-economic and political factors in a number of countries around the world. The aim of the Factbook is to provide an innovative instrument able to shed light on the complex mechanisms behind the ITTP in different countries. This report focuses on Germany. Tobacco consumption is undoubtedly a danger for human health, and governments should carefully regulate the tobacco market. Illicit tobacco avoids state regulation and taxation and may jeopardise tobacco control policies. The Factbook will contribute to raising awareness about the global importance of the ITTP and about the strategies available to prevent it. The Factbook has been developed for a wide readership ranging from policymakers, through academics, to interested stakeholders, the intention being to provide a support to develop knowledge-based debates and policies on the ITTP. The information gathered for this report originates from academic literature, grey literature, open sources, questionnaires and interviews with experts and stakeholders. There are few studies on the ITTP in Germany. Furthermore, information of law enforcement action comes mainly from the German Customs, while other law enforcement agencies, although involved in the fight against the ITTP, provide more limited data. In addition to the these issues, the data-gathering phase of the project encountered major difficulties due to the number of sources, institutions and stakeholders involved. The results of the report do not claim to be exhaustive, nor an accurate reflection of criminal practices. They provide an initial assessment of the ITTP in Germany and a starting point for future research. Details: Milan, IT: Transcrime, 2013. 89p. Source: Internet Resource: Accessed July 14, 2014 at: http://www.transcrime.it/en/pubblicazioni/the-factbook-on-the-illicit-trade-in-tobacco-products-5-germany/ Year: 2013 Country: Germany URL: http://www.transcrime.it/en/pubblicazioni/the-factbook-on-the-illicit-trade-in-tobacco-products-5-germany/ Shelf Number: 132809 Keywords: Cigarette SmugglingCigarettesIllegal TradeIllicit TobaccoTobacco |
Author: Calderoni, Francesco Title: The Factbook on the Illicit Trade in Tobacco Products 6 - Lithuania Summary: The project has been developed by Transcrime after the Round Table on Proofing EU Regulation against the Illicit Trade in Tobacco Products hosted by Universita Cattolica of Milan, on 5 May 2011. During the Round Table, participants (researchers and policymakers with experience in the field of the illicit trade in tobacco products) agreed on a research agenda concerning the ITTP (Transcrime 2011). Items 3 and 6 of the research agenda focused on the need for better analysis of the tobacco market taking account of its dual nature (i.e. legal and illicit) and on how licit and illicit markets vary across different countries and regions. Given these considerations, Transcrime has developed the Factbook on the ITTP, a multi-annual research plan providing detailed analyses of the ITTP and of its relations with the legal market and other socio-economic and political factors in a number of countries around the world. The aim of the Factbook is to provide an innovative instrument able to shed light on the complex mechanisms behind the ITTP in different countries. This report focuses on Lithuania. Details: Milan, IT: Transcrime, 2014. 97p. Source: Internet Resource: Accessed July 29, 2014 at: http://www.transcrime.it/pubblicazioni/the-factbook-on-the-illicit-trade-in-tobacco-products-6-lithuania/ Year: 2014 Country: Lithuania URL: http://www.transcrime.it/pubblicazioni/the-factbook-on-the-illicit-trade-in-tobacco-products-6-lithuania/ Shelf Number: 132810 Keywords: Cigarette Smuggling Cigarettes Illegal Trade Illicit Tobacco Tobacco |
Author: Calderoni, Francesco Title: The Factbook on the Illicit Trade in Tobacco Products 3 - Ireland Summary: This report is part of the project The Factbook on the Illicit Trade in Tobacco Products (henceforth ITTP). The project has been developed by Transcrime after the Round Table on Proofing EU Regulation against the Illicit Trade in Tobacco Products hosted by Universita Cattolica of Milan, on 5 May 2011. During the Round Table, participants (researchers and policymakers with experience in the field of the illicit trade in tobacco products) agreed on a research agenda concerning the ITTP (Transcrime 2011b). Items 3 and 6 of the research agenda focused on the need for better analysis of the tobacco market taking account of its dual nature (i.e. legal and illicit) and on how licit and illicit markets vary across different countries and regions. Given these considerations, Transcrime has developed the Factbook on the ITTP, a multi-annual research plan providing detailed analyses of the ITTP and of its relations with the legal market and other socioeconomic and political factors in a number of countries around the world. The aim of the Factbook is to provide an innovative instrument able to shed light on the complex mechanisms behind the ITTP in different countries. This report focuses on Ireland. Given the close geographical, social, economic and cultural connections, it also focuses, where appropriate, on Northern Ireland, a part of the United Kingdom.1 Tobacco consumption is undoubtedly a danger for human health, and governments should carefully regulate the tobacco market. Illicit tobacco avoids state regulation and taxation and may jeopardize tobacco control policies. The Factbook will contribute to raising awareness about the global importance of the ITTP and about the strategies available to prevent it. The Factbook has been developed for a wide readership ranging from policymakers, through academics, to interested stakeholders, the intention being to provide a support to develop knowledge-based debates and policies on the ITTP. The information gathered for this report originates from academic literature, grey literature, open sources, questionnaires and interviews with experts and stakeholders. While there are some studies on the ITTP in Ireland, the data-gathering phase of the projects encountered major difficulties due to the number of sources, institutions and stakeholders involved. The results of the report do not claim to be exhaustive, nor an accurate reflection of criminal practices. They provide an initial assessment of the ITTP in Ireland and a starting point for future research. Details: Milan, IT: Transcrime, 2013. 100p. Source: Internet Resource: Accessed July 29, 2014 at: http://www.transcrime.it/pubblicazioni/the-factbook-on-the-illicit-trade-in-tobacco-products-3-ireland/ Year: 2013 Country: Ireland URL: http://www.transcrime.it/pubblicazioni/the-factbook-on-the-illicit-trade-in-tobacco-products-3-ireland/ Shelf Number: 132811 Keywords: Cigarette Smuggling Cigarettes Illegal Trade Illicit Tobacco Tobacco |
Author: Calderoni, Francesco Title: The Factbook on the Illicit Trade in Tobacco Products 1 - United Kingdom Summary: This report provides the first country profile of the Factbook on the Illicit Trade in Tobacco Products project. The country profile focuses on the UK, where the illicit trade in tobacco products (hereinafter ITTP) has become an important concern since the 1990s. Although Government action since 2000 has successfully reduced the market share of illicit tobacco, the UK's illegal market is still above the average of other EU Member States. WHAT CAN BE FOUND IN THIS REPORT? This report is organised into three sections: Section one deals with the five drivers of the ITTP: society and economy, the legal market, regulation, the crime environment and enforcement. The drivers are important areas whose structures may positively or negatively impact on the ITTP. To enable comparison with other country profiles, five key indicators have been selected for each driver. Section two focuses on the four components of the ITTP: demand, products, supply, modus operandi and geographical distribution. Section three identifies the key factors of the ITTP in UK and frames the drivers in the components, analysing how different elements of the drivers influence the components of ITTP. Details: Milan, IT: Transcrime, 2013. 100p. Source: Internet Resource: Accessed July 29, 2013 at: http://www.transcrime.it/en/pubblicazioni/the-factbook-on-the-illicit-trade-in-tobacco-products-1/ Year: 2013 Country: United Kingdom URL: http://www.transcrime.it/en/pubblicazioni/the-factbook-on-the-illicit-trade-in-tobacco-products-1/ Shelf Number: 132814 Keywords: Cigarette Smuggling Cigarettes Illegal Trade Illicit Tobacco Tobacco |
Author: Calderoni, Francesco Title: The Factbook on the Illicit Trade in Tobacco Products 2 - Italy Summary: This report is part of the project The Factbook on the Illicit Trade in Tobacco Products. It focuses on Italy, where the illicit trade in tobacco seems to have grown in recent years. This fact, combined with the geographical location of the country and the consolidated presence of organised crime, makes Italy an interesting country to explore in terms of ITTP flows in the Mediterranean basin and towards North European countries. WHAT CAN BE FOUND IN THIS REPORT? This report is organised into three chapters: - Chapter one deals with the five drivers of the ITTP: society and economy, the legal market, regulation, the crime environment and enforcement. The drivers are important areas whose structures may positively or negatively impact on the ITTP. To enable comparison with other country profiles, five key indicators have been selected for each driver. The data for the driver indicators come from comparable sources (latest available years). When possible, the report provides the most up-to-date data from national sources. - Chapter two focuses on the four components of the ITTP: demand, supply, products, modus operandi and geographical distribution. - Chapter three identifies the key factors of the ITTP in Italy and frames the drivers in the components, analysing how different elements of the drivers influence the components of the ITTP. Details: Milan, IT: Transcrime, 2013. 110p. Source: Internet Resource: Accessed July 29, 2014 at: http://www.transcrime.it/en/pubblicazioni/the-factbook-on-the-illicit-trade-in-tobacco-products-2-italia/ Year: 2013 Country: Italy URL: http://www.transcrime.it/en/pubblicazioni/the-factbook-on-the-illicit-trade-in-tobacco-products-2-italia/ Shelf Number: 132816 Keywords: Cigarette Smuggling Cigarettes Illegal Trade Illicit Tobacco Tobacco |
Author: Hawken, Angela Title: Unintended Consequences of Cigarette Taxation and Regulation Summary: Tobacco smoking harms health. Taxes and regulations can reduce that harm. But evasion reduces the efficacy of taxes and regulations and creates harms of its own in the form of illicit markets. Enforcement can reduce evasion but creates additional harms, including incarceration and violence. Peter Reuter has pointed out that a flat ban on cigarettes would be likely to generate illicit-market harms similar to the harms of existing illicit drug markets. Taxes and regulations can be thought of as "lesser prohibitions," subject to the same sorts of risks. Minimizing total harm means minimizing the sum of abuse harms and control harms. Tighter regulations and higher taxes on cigarettes risk increasing the size of the existing illicit tobacco markets, which are already substantial. That risk can be somewhat blunted by increasing enforcement effort, but doing so can be costly on several dimensions and might, under plausible assumptions, lead to an increase in violence. Tobacco policymaking should therefore consider illicit markets and the need for enforcement; some of the health benefits of regulation and taxation may be offset by increased illicit-market side effects and enforcement costs. The presence of licit substitutes, such as e-cigarettes, can greatly reduce the size of the problem; the regulation of e-cigarettes should take this effect into account. If enforcement is to be increased to counterbalance tightened controls, positive-feedback dynamics suggest that the enforcement increase should precede, rather than follow, the tightening. Details: Malibu, CA: Pepperdine University - School of Public Policy, 2013. 50p. Source: Internet Resource: School of Public Policy Working Papers, Paper 47: Accessed August 11, 2014 at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2354772 Year: 2013 Country: United States URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2354772 Shelf Number: 132993 Keywords: Cigarette SmugglingCigarettesIllegal Tobacco (U.S.)Illicit MarketsTax Evasion |
Author: International Tax and Investment Center Title: Asia-14: Illicit Tobacco Indicator 2013 Summary: This study is an update and expansion of our previous research, 'Asia-11 Illicit Tobacco Indicator 2012'. In light of newly available data sources, it has been possible to extend the coverage to include Cambodia, Laos, and Myanmar, resulting in full coverage of the 10 ASEAN member countries plus Australia, Hong Kong, Pakistan, and Taiwan. In 2013, 10.9% of cigarettes consumed in Asia-141 were illicit Total Consumption (legal and illicit) across the Asia-14 was an estimated 760.1 billion cigarettes in 2013. Of this, 10.9% or 82.8 billion cigarettes in Asia-14 were estimated to have been illicit. In ASEAN, Total Consumption was an estimated 608.2 billion cigarettes in 2013. Of this, 9.1% or 55.6 billion cigarettes were estimated to have been illicit. In 2013, the share of Illicit Consumption increased in 7 of the 11 markets that were part of the 'Asia-11 Illicit Tobacco Indicator 2012' report Nearly three quarters of Illicit Consumption occurred in just three markets: Pakistan (22.8% Illicit), the Philippines (18.1%), and Vietnam (20.7%). In the 11 markets for which estimates are available for both 2012 and 2013 (i.e., the 'Asia-11'), Illicit Consumption is estimated to have increased by 20.1%, from 66.5 billion cigarettes to 79.9 billion cigarettes (an increase of 13.4 billion cigarettes). This was driven primarily by the rise in Illicit Consumption in the Philippines (by 12.7 billion cigarettes, an increase of 198%), underpinned by significant growth in Domestic Illicit Consumption. 7 markets (Australia, Brunei, Indonesia, Malaysia, the Philippines, Taiwan, and Vietnam) saw an increase in the share of Illicit Consumption in Total Consumption of cigarettes between 2012 and 2013. The steepest rise was again in the Philippines. However, Pakistan, and Singapore saw noticeable declines in the share of Illicit Consumption in 2013, the former a result of declining Domestic Illicit volumes, and the latter a consequence of a decline in Contraband. In both cases, however, the share of Illicit Consumption in Total Consumption remained much higher than the Asia-14 average. Domestic and Non Domestic Illicit both contributed to the rise in Illicit Consumption in Asia There was a 181.2% rise in Domestic Illicit Consumption in the Philippines (equal to 11.0 billion cigarettes). A small amount of Domestic Illicit was also identified in Indonesia in 2013. A number of markets saw a rise in Non-Domestic Illicit cigarettes in 2013. Consumption of Contraband cigarettes increased in Indonesia and Taiwan, while consumption of Counterfeit cigarettes rose sharply in the Philippines. There were increases in Non-Domestic Illicit of Unspecified Market Variant in Australia and Vietnam. Asia-14 government tax revenue losses from Illicit Consumption totalled US$ 3.9 billion in 2013 The tax loss associated with Illicit Consumption of cigarettes increased in 6 markets compared with 2012. In the 11 markets for which estimates are available for both 2012 and 2013, the estimated tax loss from Illicit Consumption increased from US$ 3.4 billion in 2012 to US$ 3.9 billion, an increase of 13.8%. The largest rise in tax loss in absolute terms was in the Philippines (497%). Australia and Indonesia also experienced a significant rise in estimated tax losses from Illicit Consumption. The government tax revenue losses from Illicit Consumption in the ASEAN region totalled US$ 2.1 billion in 2013. Details: Oxford, UK: Oxford Economics, 2014. 220p. Source: Internet Resource: Accessed October 8, 2014 at: http://www.pmi.com/eng/tobacco_regulation/illicit_trade/Documents/Asia-14%20Illicit%20Tobacco%20Indicator%202013.pdf Year: 2014 Country: Asia URL: http://www.pmi.com/eng/tobacco_regulation/illicit_trade/Documents/Asia-14%20Illicit%20Tobacco%20Indicator%202013.pdf Shelf Number: 134222 Keywords: CigarettesContrabandEconomic CrimesFinancial CrimesIllegal MarketsIllegal TobaccoIllicit Products (Asia)Illicit TobaccoTax Evasion |
Author: International Tax and Investment Center Title: Asia-11: Illicit Tobacco Indicator 2012 Summary: In 2012, 9% of cigarettes consumed in Asia-11 were illicit Total Consumption (legal and illicit) across the Asia-111 markets covered in this report totalled an estimated 736.4 billion cigarettes in 2012, of which 9.0% or 66.5 billion cigarettes are estimated to have been illicit. This includes consumption of illicit imports and illicit products locally manufactured, such as under/non-declared products from local manufacturers. Illicit share was over 25% in five markets Brunei, Hong Kong, Malaysia, Singapore, and Pakistan all had estimated shares of illicit cigarettes in Total Consumption of over 25% in 2012. Illicit volumes were highest in Pakistan, Vietnam, and Malaysia In 2012, in both Vietnam and Pakistan, Illicit Consumption was over 20 billion cigarettes. In Malaysia the volume of illicit cigarettes was estimated at almost 8 billion. Domestic illicit cigarette volumes were highest in Pakistan and the Philippines In Pakistan and the Philippines, illicit cigarettes produced by local manufacturers and sold in the market without payment of taxes totalled an estimated 25 billion cigarettes in 2012. Asia-11 government tax revenue losses from Illicit Consumption totaled US$ 3.4 billion in 2012 The biggest tax losses in absolute terms occurred in Australia, Malaysia, Hong Kong, and Vietnam. Details: Oxford, UK: Oxford Economics, 2013. 132p. Source: Internet Resource: Accessed October 8, 2014 at: http://www.pmi.com/eng/tobacco_regulation/illicit_trade/Documents/Asia_11_Illicit_Tobacco_Indicator_2012.pdf Year: 2013 Country: Asia URL: http://www.pmi.com/eng/tobacco_regulation/illicit_trade/Documents/Asia_11_Illicit_Tobacco_Indicator_2012.pdf Shelf Number: 133908 Keywords: Cigarettes ContrabandEconomic Crimes Financial Crimes Illegal Markets Illegal Tobacco Illicit Products (Asia) Illicit Tobacco Tax Evasion |
Author: Fleenor, Patrick Title: Cigarette Taxes, Black Markets, and Crime: Lessons from New York's 50-Year Losing Battle Summary: As large state government budget gaps have opened in the past year, lawmakers across the country are turning to cigarette taxes for added revenue. Twenty states raised cigarette tax rates in 2002, and more hikes may be on the agenda during state legislative sessions in 2003. Proponents of high cigarette taxes portray them as innocuous levies that improve public health. Yet those taxes have long been known to have a dark side. Since the first state cigarette taxes were imposed in the 1920s, black markets and related criminal activity have plagued high-tax jurisdictions. Such activity has proven to be resistant to law enforcement curtailment efforts. Thanks to recent city- and state-level tax hikes, New York City now has the highest cigarette taxes in the country-a combined state and local tax rate of $3.00 per pack. Consumers have responded by turning to the city's bustling black market and other low-tax sources of cigarettes. During the four months following the recent tax hikes, sales of taxed cigarettes in the city fell by more than 50 percent compared to the same period the prior year. New York has a long history of cigarette tax evasion. Former governor Malcolm Wilson dubbed the city the "promised land for cigarette bootleggers." Over the decades, a series of studies by federal, state, and city officials has found that high taxes have created a thriving illegal market for cigarettes in the city. That market has diverted billions of dollars from legitimate businesses and governments to criminals. Perhaps worse than the diversion of money has been the crime associated with the city's illegal cigarette market. Smalltime crooks and organized crime have engaged in murder, kidnapping, and armed robbery to earn and protect their illicit profits. Such crime has exposed average citizens, such as truck drivers and retail store clerks, to violence. The failure of New York policymakers to consider the broader effects of high cigarette taxes has been a mistake repeated across the country in the stampede to maximize tax revenue from this demonized product. Too often, policymakers do not consider these effects in the erroneous belief that people do not respond to government-created economic incentives. The negative effects of high cigarette taxes in New York provide a cautionary tale that excessive tax rates have serious consequences-even for such a politically unpopular product as cigarettes. Details: Washington, DC: Cato Institute, 2003. 20p. Source: Internet Resource: Policy Analysis no. 468: Accessed June 4, 2015 at: http://object.cato.org/sites/cato.org/files/pubs/pdf/pa468.pdf Year: 2003 Country: United States URL: http://object.cato.org/sites/cato.org/files/pubs/pdf/pa468.pdf Shelf Number: 108191 Keywords: Black MarketsCigarettesContraband TobaccoIllegal MarketsTax EvasionTobacco Control |
Author: Gabler, Nachum Title: Contraband Tobacco in Canada: Tax Policies and Black Market Incentives Summary: unlawful production, distribution, and sale of cigarettes in Canada appear to have reached unprecedented levels in recent years, creating challenges for public health officials, law enforcement, tax authorities, policy makers, and the public. Our analysis identifies tobacco excise taxes as an important factor in the development and persistence of the contraband tobacco market. By inflating the cost of lawful cigarettes, such taxes do discourage smoking to some extent, but they also create powerful incentives to buy and sell contraband tobacco products. Research shows that a 10% increase in the price of tobacco products can reduce lawful cigarette sales by about 3% to 10%, depending on various geographic and demographic factors. To the extent that smokers evade excise taxes by purchasing contraband, the use of excise taxes to discourage smoking and increase government revenues is rendered ineffective. Based on the available evidence, we conclude that while tobacco taxes clearly reduce lawful tobacco sales, their impact on smoking prevalence is less clear, especially when the effects of other anti-smoking initiatives are taken into consideration. What is clear is that while several factors have facilitated the exploding contraband tobacco trade in Canada, increases in tobacco excise taxes were the spark that ignited the explosion. Details: Vancouver, BC: Fraser Institute, 2010. 75p. Source: Internet Resource: Accessed July 22, 2015 at; http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/contraband-tobacco-in-canada(1)(2).pdf Year: 2010 Country: Canada URL: http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/contraband-tobacco-in-canada(1)(2).pdf Shelf Number: 136125 Keywords: Black Markets CigarettesTaxes Tobacco Smuggling |
Author: Iringe-Koko, Ibiere Belinda Title: Illicit Tobacco: Policy Responses, Consumption and Attitudes Summary: The existence of the illicit tobacco trade has serious implications for tobacco control efforts as it encourages smoking by providing tobacco products at a cheaper price. Although this illicit trade has serious ramifications for public health in England, there is very limited data on its nature, the extent of its use and smokers' views on illicit tobacco. This thesis aimed to address this by utilising a mixed methodology approach which consisted of population based surveys of English smokers and in-depth face-to-face interviews with smokers. Prevalence of illicit tobacco use appeared to decrease between 2007-8 and 2012, but there was an increase from 2010-11 to 2012. 'Under the counter' tobacco purchases in retail shops emerged as a prominent source of illicit tobacco, although smokers were able to access a number of illicit sources. Smokers who exclusively purchased illicit tobacco paid much less for their tobacco products compared with those who reported exclusive duty-paid tobacco purchases. Report of illicit tobacco use was more likely in younger smokers, males, smokers in low socio-economic groups, smokers of 'roll your own' tobacco and those with high tobacco dependence in 2012. However, this changed with each survey, as illicit tobacco use appeared to become more widespread across socio-demographic sub-groups. Illicit tobacco users reported lower levels of motivated to quit smoking. However, smokers in the interview study reported that loss of access to illicit tobacco would drive them to think about quitting or cutting down on their smoking. The interview study revealed that smokers were able to easily access illicit tobacco in their communities and social circles. In addition, smokers viewed the illicit tobacco market and illicit traders approvingly as providing a means of accessing affordable tobacco products. Furthermore, they were unperturbed by the illegality and associated criminality of illicit tobacco trade. Due to the nature of this illegal activity, further research should investigate how the illicit tobacco market evolves in response to policy efforts. Details: London: University College London, 2013. 465p. Source: Internet Resource: Dissertation: Accessed August 5, 2015 at: http://discovery.ucl.ac.uk/1463373/1/Belinda%20Iringe-Koko%20PhD%20THESIS%20%5BFINAL%5D.pdf Year: 2013 Country: United Kingdom URL: http://discovery.ucl.ac.uk/1463373/1/Belinda%20Iringe-Koko%20PhD%20THESIS%20%5BFINAL%5D.pdf Shelf Number: 136326 Keywords: CigarettesIllegal TobaccoIllicit TobaccoIllicit Trade |
Author: Chaudhry, Peggy Title: The Impact of Plain Packaging on the Illicit Trade in Tobacco Products Summary: The illicit trade in consumer products is a dynamic problem with a global reach. Measuring the scale of this trade and the worldwide value of illicitly-traded products is inherently difficult given the illegal nature of this activity, but most accept that it has grown significantly over the last few decades. While the loss of tax revenue is the most measurable impact of illicit trade, other negative consequences center on: harm to consumers; damage suffered by intellectual property owners and legitimate supply chain members; and profits to organized criminal groups. Packaging is a critical deterrent to the counterfeiting of consumer products. Reflecting the challenges of measuring the scale of all global illicit trade, there are no reliable statistics for calculating precisely the size of the worldwide illicit tobacco problem. Some estimates suggest that around 10 to 11% of the global cigarette market is illicit, representing over 600 billion cigarettes a year. Cigarettes can be thought of as the 'ideal smuggled product' since the product is light, extremely valuable for its size and weight, and easy to transport and conceal in shipments of other products. There are various types of illicit tobacco products and the nature of this trade varies between markets. Some markets are mainly a source of illicit products, others are transit routes, and still others are destination markets for consumption. In this report, the serious illicit trade issues affecting the UK are used as a case study. Factors spurring the growth of illicit tobacco trade include: affordability of unlawful cigarettes compared to lawful ones; huge profit incentives for illicit traders; low criminal penalties disproportionate to these profit incentives; and widespread consumer complicity. This trade is assisted by the geographic characteristics of some markets (e.g., destination countries with borders more conducive to receiving illicit product). Currently packaging that is complex or innovative acts as a deterrent to counterfeiters of tobacco products since keeping up with the evolving packaging of genuine product is an expensive and time-consuming process. Packaging is also one of the few ways smokers and law enforcement agencies can use to assess whether a product is genuine or counterfeit. Illicit traders are often nimble, adapting to changing consumer demands and the regulatory environment. They enjoy the business benefits of product diversification without the regulatory constraints faced by manufacturers of legitimate product. The organized criminal gangs often behind the illicit tobacco trade also have the ability to exploit global networks of contacts and to work closely with other criminal enterprises. Tackling the illicit trade in tobacco products requires a multi-level response including national and international collaboration between regulators, enforcement agencies, and those who operate within the legitimate product supply chain. A careful review of the relationship between plain packaging for tobacco products and illicit tobacco trade is required given the pre-existing, serious societal impacts of this illegitimate trade. In our expert opinion, plain packaging for tobacco products will worsen the illicit trade in tobacco products as it would open a number of new opportunities for illicit traders. Notably, plain packaging will allow the illicit traders to provide counterfeit cigarettes using the mandated plain packaging specified by national legislation. The advent of plain packaging may also encourage new entrants to the lucrative business of counterfeiting cigarette packs since the costs and barriers of getting into this business will be reduced; reductions in start-up costs may encourage those without the resources to manufacture an authentic-looking copy of currently available sophisticated pack designs to begin counterfeiting plain packs. The recent Australian plain packaging legislation shows why this is the case: - Plain packs will be easier to counterfeit. In Australia, each cigarette pack can be covered only in a shade of "drab brown" specified by the regulator. In addition, the law forces the use of the most commonly counterfeited pack shape - a flip top box. - Illicit traders are effectively given a blueprint of 'how to make the pack.' Pack specifications will be made available online in contrast to the current practice where design specifications and colors are deliberately kept confidential in order to deter counterfeiters. - Static packaging reduces future cost burdens for illicit traders. A uniform pack design, like the one mandated in Australia, removes the need to keep up with the manufacturers' evolving pack innovations and developments, therefore, reducing the cost burden on counterfeiters since there will be no additional investment necessary until there is a further change in the law. - Plain packaging creates economies of scale in production. Once one plain pack brand is faked, the counterfeiter can reproduce packaging of each brand on the market with minimum effort since the only difference on each pack is the 'brand and variant names' that appear only in a specified font/size. Ironically, while plain packaging makes life easier and cheaper for counterfeiters, it may make life more difficult for consumers, retailers, and law enforcement agencies to differentiate between genuine and fake packs. Those who conduct forensic investigative analysis of packs may have to resort to more resource-intensive and time-consuming tools of verification in a plain packaging environment. Complex health warnings, tax stamps, or holograms will not be an effective deterrent to counterfeiting these much simpler packs. Such 'anti-counterfeiting' markings are already easily faked and counterfeiters generally only replicate enough to 'fool the consumer.' Track and trace requirements are also not the answer as these apply only to manufacturers of genuine product (and, even then, not all of them). In addition, these requirements cannot provide the information smokers need to tell if they have bought a fake pack. Plain packaging would also provide illicit traders with new opportunities to: - Offer counterfeit branded packaging that predates the introduction of the plain packaging measure. While brand owners will be prevented from using their iconic branding, criminals will not. Smokers who want to use familiar branded packs may continue to - wrongly - assume that the branded illicit product being offered is genuine but produced in another market when it is, in fact, fake. - Maintain or increase sales other types of branded packs: 'illicit whites' and contraband genuine product. In our expert opinion, plain packaging is highly likely to aggravate the existing negative impacts of the already serious and socially damaging trade in illicit tobacco. Since illicit products are often more accessible to those underage and those from low-income groups, plain pack laws risk undermining a key objective of plain packaging: to reduce smoking by these groups. We foresee that creating a plain packaging environment will also intensify the following serious societal impacts of the illegitimate trade: - Negative impacts on governments and taxpayers. The loss of tax revenues as more smokers shift from licit to illicit product has a multiplier effect since governments have less funding for healthcare, education, and other public services. 'Cross border shopping' is also likely to increase with the search for familiar branded packs providing an added incentive to the price benefits of buying packs abroad, further reducing government tax revenue in the smoker's 'home market.' - Detrimental influences on communities and society. An array of problems arises from illicit trade that range from cultivating consumers of illicit product who disrespect the law to fostering organized crime groups. These groups often penetrate low-income communities with their cheap products and enlist vulnerable people to perform perceived 'soft crimes,' such as 'ant smuggling.' In the long run, this illicit trade may 'normalize' criminal behavior and lead the individuals involved towards other acts of criminality. - Costs to legitimate manufacturers and retailers. Increased sales of fake products shift revenues from legitimate manufacturers and jobs from the highly-skilled legitimate workforce employed at all levels of the supply chain. Legitimate retailers already lose business to those involved in illicit tobacco trade. - Additional harmful effects to smokers. Regulators and public health officials have repeatedly expressed the concern that smokers are exposed to greater health risks by consuming illicit product. - Profits made by serious criminal organizations. The profits stemming from illicit tobacco trade are often used to finance other serious criminal or terrorist activity including prostitution, human trafficking, and trading of lethal weapons. In summary, we recommend a careful appraisal be given to these unintended negative consequences before plain packaging regulations are developed. Policy makers should be aware that plain packaging will, in our expert opinion, make the illicit trade in tobacco worse and these policy makers should therefore be exceptionally careful to ensure that such regulations do not inadvertently undermine anti-illicit trade programs and initiatives. Details: Villanova, PA: The Authors, 2012. 187p. Source: Internet Resource: Accessed September 30, 2015 at: http://www.peggychaudhry.com/publications/Impact_on_illicit_trade.pdf Year: 2012 Country: International URL: http://www.peggychaudhry.com/publications/Impact_on_illicit_trade.pdf Shelf Number: 136921 Keywords: CigarettesCounterfeit GoodsDesign Against CrimeIllegal TobaccoIllicit TradeOrganized Crime |
Author: Calderoni, Francesco Title: France: the factbook on the illicit trade in tobacco products Summary: This report provides the French country profile of the project The Factbook on the Illicit Trade in Tobacco Products . In France, the illicit trade in tobacco products is a key issue due to its high penetration in the French tobacco market, reaching 14.7% of total consumption in 2014 (KPMG 2015). Tobacco control policies are at the top of the French policy agenda, and a national action plans against the ITTP was launched in 2011. Moreover, the recent ratification of the Protocol Against Illicit Trade in Tobacco Products (WHO FCTC), in November 2015, demonstrates France's commitment to tackling the illicit trade. The growing attention of the French Customs to tobacco smuggling is evidenced by the increasing number of seizures. WHAT CAN BE FOUND IN THIS REPORT? This report is updated at December 2015. It is organised into three chapters: -- Chapter one deals with the five drivers of the ITTP: society and economy, the legal market, regulation, the crime environment and enforcement. The drivers are important areas whose structures may positively or negatively impact on the ITTP. To enable comparison with other country profiles, five key indicators have been selected for each driver. The data for the driver indicators come from comparable sources (latest available years). When possible, the report provides the most up-to-date data from national sources. -- Chapter two focuses on the four components of the ITTP: demand, products, supply, modus operandi and geographical distribution. -- Chapter three identifies the key factors of the ITTP in France and frames the drivers in the components, analysing how different elements of the drivers influence the components of the ITTP. Details: Milan: Transcrime, 2016. 100p. Source: Internet Resource: The Factbook on the Illicit Trade in Tobacco Products 8: Accessed July 12, 2016 at: http://www.transcrime.it/wp-content/uploads/2016/06/The-Factbook-on-the-ITTP-France_EN.pdf Year: 2016 Country: France URL: http://www.transcrime.it/wp-content/uploads/2016/06/The-Factbook-on-the-ITTP-France_EN.pdf Shelf Number: 139618 Keywords: Cigarette SmugglingCigarettesIllicit TradeOrganized CrimeTobacco |
Author: Calderoni, Francesco Title: The Belarusian Hub for Illicit Tobacco Summary: Key hubs are crucial sets of countries on the regional, continental or global map of the illicit trade in tobacco products (ITTP). The analysis of key hubs instead of single countries enables a more comprehensive understanding of the factors determining transnational illicit flows and a more effective identification of the strategies needed to fight and prevent the ITTP. The following elements often characterise key hubs: - medium to high levels of the ITTP in the hub, - significant price differentials of tobacco products across the hub, - extensive engagement of local manufacturers in the ITTP and - substantial flows of illicit tobacco to, within or from the hub to other countries. This report focuses on the Belarusian hub for illicit cigarettes. Belarus is the center of the hub because it is a source for illegal tobacco products destined to the EU. The surrounding countries are included for different reasons. Russia and Ukraine used to play a significant role in the ITTP flows and still remain important sources of illicit products. Other countries within the hub, such as Lithuania, Poland, Latvia, are both destination and transit countries of the Belarusian illicit tobacco flows. The report takes the name of the center of the hub. Details: Milan: Transcrime, 2013. 54p. Source: Internet Resource: Accessed July 12, 2016 at: http://www.transcrime.it/wp-content/uploads/2016/06/The-Belarusian-Hub-for-Illicit-Tobacco.pdf Year: 2016 Country: Belarus URL: http://www.transcrime.it/wp-content/uploads/2016/06/The-Belarusian-Hub-for-Illicit-Tobacco.pdf Shelf Number: 139622 Keywords: Cigarette SmugglingCigarettesIllicit TradeOrganized CrimeTobacco |
Author: Stewart, Glenn Title: Illicit and Illegal Tobacco in North Central and North East London: A report on smokers' perceptions, supply and demand Summary: The smoking related health burden is well-documented. It causes some 100,000 deaths a year in the UK, 86,000 deaths a year in England and for every smoking death it is estimated that there are 20 people with smoking related illnesses. Equally her Majesty's Revenue and Customs (HMRC) estimates that in 2012-13, the illicit market share for cigarettes was 9% indicating a 'tax-gap' of L1.1 billion (e.g. the gap between the tax owed and collected) and that illicit hand-rolling tobacco accounted for 36% of the market with a tax-gap of L900m. An understanding of the trade in illicit and illegal trade in tobacco products is therefore important from both a health and economic perspective In April 2013, the South East London Illicit Tobacco Group commissioned a survey of their respective boroughs (Bexley, Bromley, Greenwich, Lambeth, Lewisham and Southwark) to gain insights into the market for illegal and illicit2 tobacco in the respective boroughs. In May 2015 the boroughs of Camden, Enfield, Hackney, Haringey, Islington, Tower Hamlets and Waltham Forest commissioned the same survey in their boroughs. The same survey methodology and company was used in both instances with a few additional questions added to the survey on attitudes. The seven boroughs involved in the survey in NC NE London are very different: 2011 census data indicates that population size varies from 220,338 in Camden to 312,466 in Enfield; over-18 smoking prevalence ranges from 15.8% in Enfield to 21.7% in Islington, the 'White British' population from 48% in Islington to 31% in Tower Hamlets (compared to 80% in England and 45% in London) and the over 50's population from 28.8% in Enfield to 15.8% in Tower Hamlets. Details: London: London Borough of Enfield, 2015. 31p. Source: Internet Resource: Accessed August 3, 2016 at: http://www.smokefreeislington.nhs.uk/wp-content/uploads/2016/01/Illicit_and_illegal_tobacco_report_NE_NC_London_November_2015.pdf Year: 2015 Country: United Kingdom URL: http://www.smokefreeislington.nhs.uk/wp-content/uploads/2016/01/Illicit_and_illegal_tobacco_report_NE_NC_London_November_2015.pdf Shelf Number: 139970 Keywords: CigarettesIllegal TobaccoIllicit Tobacco |
Author: Leuprecht, Christian Title: Smoking Gun: Strategic Containment of Contraband Tobacco and Cigarette Trafficking in Canada Summary: anadians think of contraband tobacco and cigarettes as a nuisance at best, or a tax-revenue problem at worst, not in terms of organized crime or terrorism. This authoritative study of the size, scope, and operations of contraband tobacco and cigarettes in Canada reveals this to be a false dichotomy. Canadian law enforcement seizures of contraband tobacco routinely include high-powered weapons, hard and designer drugs, stolen vehicles and other merchandise, and lots of cash. Indeed the week this report was released, police in Quebec carried out 70 raids and made 60 arrests against an international criminal network involved in drug and contraband tobacco trafficking, and money laundering, in the largest anti-contraband operation to date. Contraband tobacco is lucrative, it is produced and trafficked systematically alongside other illicit goods, and Canadian crime syndicates are heavily invested in its proceeds. Globally, money from contraband tobacco and cigarettes is a major source of revenue for the likes of ISIS, al-Qaeda, and Hezbollah, whose contraband fundraising activities in North America have been subject to indictments. Producers and traffickers of contraband prey on the most vulnerable population groups in Canadian society. They brazenly flaunt restrictions on procurement, manufacturing, packaging, promotion, and sale of tobacco and cigarettes. Their ranks count hardened Mafioso and notorious criminal bikers who exploit Native communities. Tobacco farmers divert crops to the illicit market; some cooperate to reap higher profits, some uncooperative ones are coerced or have their tobacco stolen. Compared to illicit drugs, materials and manufacture are readily accessible, and the market for contraband tobacco and cigarettes is huge, highly profitable and easy to reach. The loss factor is minimal because chances of detection are small, penalties lenient (if any are imposed at all), and social stigma less than for alternative illicit activities. Canada's contraband market in tobacco and cigarettes is estimated at more than $1.3 billion, which rivals the narcotics market. In Ontario alone, the illicit cigarette market is roughly $500 million annually and forgone tax revenue between $1.6 billion and $3 billion. Enforcement is hampered by entangled jurisdictional issues, collective action problems within and across jurisdictions, scarce enforcement resources, legislative gaps, and, it seems, lack of a comprehensive plan, let alone strategy. There has been some institutional learning, and worthwhile innovations at different jurisdictional levels - federal, provincial, and First Nations. This study explores and compares some of these innovations to forge a comprehensive approach to contraband tobacco and cigarettes. Although law enforcement has a role to play, like so much other criminal activity, we are clearly not going to arrest our way out of this problem. Ultimately, a comprehensive strategy needs to change the incentive structures in place on both the demand and supply sides, optimize legislative and regulatory frameworks, and improve inter-agency and inter-jurisdictional coordination. Key recommendations include: Revenue sharing with First Nations The collection and administration of an excise tax by First Nations governments promises a sustained stream of revenue for community development and infrastructure projects and a significant incentive to reduce tax evasion in cigarette sales to non-Natives. In return for greater fiscal autonomy, sales to ineligible customers would be curbed by reducing the quota allocation to First Nations. Halting diversion from legitimate growers in Ontario Ontario is the only Canadian jurisdiction where tobacco is grown. Although the transition from the Ontario Flue-Cured Tobacco Growers' Marketing Board to the Ontario Ministry of Finance has tightened monitoring and enforcement of raw leaf tobacco, three changes will hamper the ability to investigate and interrupt diversion of tobacco to illicit markets: once harvested, growers no longer need to identify the source and the final destination of raw leaf; labelling information that tracks baled raw leaf tobacco is no longer required; and reporting frequency has been loosened from weekly to quarterly. Criminalizing the unlicensed growth, sale, purchase, and/or transport of raw leaf would acknowledge the serious consequences of diverted raw leaf and empower police to reinforce the licensing regime. Federal coordination and a Tobacco Ombudsman C-10 opens the opportunity for the federal government to facilitate coordination of a unified taxation structure for tobacco and cigarettes for all Canadian peoples, across provinces and reserves. This authority could be administered and enforced by a Canadian Tobacco Ombudsman under the aegis of the Minister of Public Safety. An ombudsman could improve coordination and communication among law enforcement agencies and between law enforcement and other regulatory bodies. Enforcement: Lessons learned Ontario recently announced a Contraband Tobacco Enforcement Team that stands to draw lessons from Quebec, where Project ACCES has proven quite successful over more than a decade. Moreover, it and its outcomes come at no additional cost to government. In fact, it more than pays for itself: by reaping fines and seizures, and realizing a growing tax base due to deterring contraband without a change in smoking rates, the project has seen a return of as much as 16 times the investment. Public awareness Consumers of contraband tobacco are blissfully unaware of their habit's connection with organized crime; greater awareness might stem consumption, especially if on-reserve manufacturers associated with organized crime are clearly distinguished from those who are not. Contraband has a more pervasive impact on the public safety of Canada, Canadians, and Canadian interests than terrorism has ever had. If Canadians only knew, they would demand that government act accordingly. Now they do. It is time to act to ensure the benefits of taxation accrue to all citizens instead of organized criminals and terrorists. Details: Ottawa, ONT: Macdonald-Laurier Institute, 2016. 65p. Source: Internet Resource: Accessed September 21, 2016 at: http://www.macdonaldlaurier.ca/files/pdf/MLILeuprechtContrabandPaper-03-16-WebReady.pdf Year: 2016 Country: Canada URL: http://www.macdonaldlaurier.ca/files/pdf/MLILeuprechtContrabandPaper-03-16-WebReady.pdf Shelf Number: 145611 Keywords: Cigarette Smuggling CigarettesContraband GoodsContraband TobaccoIllegal CigarettesIllegal TobaccoOrganized CrimeTax Evasion |
Author: Zhang, Bo Title: What Effect Does Tobacco Taxation Have on Contraband? Debunking the Taxation - Contraband Tobacco Myth Summary: Research demonstrates that many factors are associated with contraband tobacco use, including: easy access, misconceptions about "legal" purchase of cigarettes from First Nations' Reserves, insufficient enforcement and penalties, and organized criminal activity. It is frequently claimed that tobacco taxes cause smuggling. For example, a 2010 Fraser Institute Report, Contraband Tobacco in Canada: Tax Policies and Black Market Incentives, concludes that "Our research identifies federal and provincial tobacco excise taxes as a primary precipitating factor in the growth of this black market" (i.e., contraband cigarettes market). Does increasing tobacco tax necessarily increase contraband? To debunk the taxation and contraband tobacco myth we provide evidence from the literature, present Ontario trend data on tobacco taxes, consumption, prevalence and contraband, compare tax and price data in Canada, and critically review the Fraser Institute Report. Key Findings: - Evidence from many countries shows that tobacco tax increases will reduce tobacco use and increase tobacco revenues, even when there is some small amount of accompanied contraband tobacco use. Many of the small proportion of smokers who might move to contraband tobacco return to legal tobacco within a short period of time. - Accompanying increased tobacco taxes with anti-contraband measures are effective in keeping leakage to contraband tobacco. - Self-reported data on purchase of contraband cigarettes based on large population-based surveys show a significant decline between 2008 and 2012 in Ontario - a period during which tobacco taxes increased moderately. - The province of Quebec has successfully decreased contraband tobacco use substantially while maintaining and now raising tobacco taxes. - The Royal Canadian Mounted Police seizure data of contraband cigarettes also show a significant decline between 2008 and 2012 in Canada. - Many factors are associated with contraband tobacco use, including: easy access, misconceptions about "legal" purchase of cigarettes from First Nations' Reserves, insufficient enforcement and penalties, and organized criminal activity. Cigarette smoking prevalence and consumption has been declining since 2007 in Ontario, while tobacco taxes and tobacco tax revenue have been relatively stable during the same period, further supporting a decreasing trend in contraband tobacco use in Ontario. - Ontario and Quebec have the lowest tobacco taxes among all provinces in Canada, yet the number of consumers of contraband tobacco is the largest in these two provinces. - The Fraser Institute Report's conclusion is not supported by the evidence cited in the report and missed substantial evidence from the literature. Our conclusion is that the benefits of increased tobacco taxes outweigh any minor increase in contraband use that might occur. Tax increases are best accompanied by more stringent anti-contraband measures. Details: Toronto: Ontario Tobacco Research Unit, 2015. 32p. Source: Internet Resource: Accessed September 21, 2016 at: http://otru.org/wp-content/uploads/2015/02/special_tax_contraband_final.pdf Year: 2015 Country: Canada URL: http://otru.org/wp-content/uploads/2015/02/special_tax_contraband_final.pdf Shelf Number: 145614 Keywords: CigarettesContraband GoodsContraband TobaccoIllegal TobaccoTaxesTobacco Smuggling |
Author: Luk, Rita Title: Contraband Cigarettes in Ontario Summary: This report documents the scope of the contraband cigarette market in Ontario and quantifies the extent of use and the financial impact on tax revenues of one source of contraband tobacco products - cigarettes purchased on First Nations reserves. The report also describes the characteristics of smokers who most frequently purchase untaxed or partially taxed cigarettes on reserves. Key findings are based on data for adult smokers surveyed from July 2005 to June 2006. At least 14% of cigarettes are bought on reserves; this is a conservative estimate of the use of contraband tobacco products, as it does not include contraband cigarettes sold off reserve. To maximize the effectiveness of tobacco tax policy and protect tax revenues, the authors suggest that the Ontario and federal governments will have to work collaboratively, and with First Nations communities, to develop solutions and implement measures to prevent contraband. Details: Toronto: Ontario Tobacco Research Unit, 2007. 37p. Source: Internet Resource: Accessed October 7, 2016 at: http://otru.org/wp-content/uploads/2012/06/special_nov_2007.pdf Year: 2007 Country: Canada URL: http://otru.org/wp-content/uploads/2012/06/special_nov_2007.pdf Shelf Number: 110502 Keywords: CigarettesContraband ProductsIllegal CigarettesTax EvasionTax Policy |
Author: Johnston, Nick Title: Cigarette Smuggling: Poland to Sweden Summary: Cigarette smuggling is a multibillion dollar industry which directly feeds off government revenue. Within the European Union (EU) there are losses of around 11.3 billion euro in tax revenue each year as a result of this criminal activity. The unique socioeconomic environment of the EU coupled with the open borders policy provides smugglers with opportunities to make incredible profits. The demand for cheap tobacco products across Europe is high so the illicit production industry is a viable market for many to capitalize on. Attempts to curtail the trade are weighed down by ineffective legislation and limited resources. The limited legal repercussions and immense profit margins make the cigarette smuggling an incredibly attractive enterprise. Smugglers to convey their supply from Poland, Belarus and the Baltic states up to Sweden and Norway where they can make profit margins of up to 1000%. The methods used to transport the contraband can be as intuitive as they are audacious. Ranging from flying in small aircraft into abandoned Swedish airports to smuggling in thousands of cigarettes in a concrete segment of a bridge awaiting construction. This report explores the extent of the illegal tobacco trade within the EU, detailing how government institutions are affected. There is a special focus on cigarette trends in Poland, which is the prevailing origin of tobacco products within the EU. Through uncovering the plights of the system which allows for illicit trade to flow through, the report provides recommendations for all levels of law enforcement, from local to international, on addressing the growing issue. Details: Stockholm: SWE: Institute for Security & Development Policy, 2016. 42p. Source: Internet Resource: Accessed November 22, 2016 at: http://isdp.eu/content/uploads/2016/10/Cigarette-Smuggling-Report-2016.pdf Year: 2016 Country: Europe URL: http://isdp.eu/content/uploads/2016/10/Cigarette-Smuggling-Report-2016.pdf Shelf Number: 147312 Keywords: Cigarette SmugglingCigarettesIllegal TradeOrganized Crime |
Author: Calderoni, Francesco Title: The Eastern Balkan Hub for Illicit Tobacco Summary: Key hubs are crucial sets of countries on the regional, continental or global map of the illicit trade in tobacco products. Analysis of key hubs instead of single countries enables a more comprehensive understanding of the factors determining the transnational illicit flows and a more effective identification of the strategies to fight and prevent the ITTP (Illicit Trade in Tobacco Products). The following elements often characterise key hubs: • medium to high levels of the ITTP in the hub, • significant price differentials of tobacco products across the hub, • extensive engagement of local manufacturers in the ITTP, • substantial flows of illicit tobacco to, within or from the hub to other countries. This report focuses on the Eastern Balkan hub for illicit cigarettes. Bulgaria is the most relevant country in the hub because it has significant inflows and outflows of illicit tobacco products. The sorrounding countries (Greece, Macedonia, Romania, Serbia and Turkey) are included because they enables and facilitate these flows. The report takes the name from the geographical area of the countries included. Details: Milano: Transcrime – Università Cattolica del Sacro Cuore, 2016. 53p. Source: Internet Resource: Accessed December 23, 2016 at: http://www.transcrime.it/wp-content/uploads/2016/08/TheEasternBalkanHubforIllicitTobacco.pdf Year: 2016 Country: Europe URL: http://www.transcrime.it/wp-content/uploads/2016/08/TheEasternBalkanHubforIllicitTobacco.pdf Shelf Number: 147806 Keywords: CigarettesIllegal TobaccoIllegal TraceIllicit TobaccoIllicit TradeTobacco Smuggling |
Author: Prieger, James E. Title: Cigarette Taxes and Illicit Trade in Europe Summary: Cigarettes are highly taxed in Europe to discourage tobacco use and to fund public-health measures to mitigate the harms from tobacco consumption. At higher prices (more precisely, at higher differentials between licit and black-market prices) consumers substitute more toward illicit cigarettes. Illicit retail trade in cigarettes (IRTC) includes counterfeiting and smuggling - either of legally purchased products, from lower-tax to higher-tax jurisdictions, or of entirely non-tax-paid cigarettes. The existing literature includes claims that taxes are not an important factor determining the scale of IRTC. We investigate these claims with data from 1999-2013 in the European Union. We find that while the simple correlation between licit cigarette prices and the market share of illicit cigarettes in consumption is negative, raising prices in any one country would, on average, lead to substantial increases in the expected illicit market share and volume in that country. A one euro increase in tax per pack in a country is expected to increase illicit market share by 5 to 12 percentage points and increase illicit cigarette sales by 25% to 120% of the average consumption. We also find that the role of prices in stimulating IRTC is, empirically, far more important than the role of corruption. The results are robust to a host of alternative specifications and sources of data. Details: Pepperdine University, School of Public Policy Working Papers, 2016. 77p. Source: Internet Resource: Accessed August 29, 2017 at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2718519 Year: 2016 Country: Europe URL: Shelf Number: 146934 Keywords: CigarettesIllicit TradeTax EvasionTobacco |
Author: Bate, Roger Title: Large Cigarette Tax Hikes, Illicit Producers, and Organized Crime: Lessons from Pakistan Summary: With the stated aim of increasing revenue and discouraging smoking, Pakistan raised tobacco duties over the past five years. The result empowered illicit actors, with a flourishing of illicit production and smuggling of cigarettes. Revenue rose initially, only to fall back as untaxed products proliferated. While organized crime and local production interests were the big winners, smoking rates have remained largely unchanged. Pakistan's authorities have tried to resolve the problem through better enforcement and lowering of duties for certain products, but overall the lesson learned is that rapid duty increases have significant negative effects that are difficult to reverse when illegal supply cannot be controlled. Details: Washington, DC: American Enterprise Institute, 2018. 10p. Source: Internet Resource: Accessed September 8, 2018 at: https://www.aei.org/publication/large-cigarette-tax-hikes-illicit-producers-and-organized-crime-lessons-from-pakistan/ Year: 2018 Country: Pakistan URL: https://www.aei.org/wp-content/uploads/2018/06/Large-Cigarette-Tax-Hikes-Illicit-Producers-and-Organized-Crime.pdf Shelf Number: 151466 Keywords: CigarettesIllicit TradeOrganized CrimeSmugglingSmuggling of GoodsTobacco |
Author: Center for the Study of Democracy Title: The Illicit Trade of Tobacco Projects Along the Balkan Route: Bulgaria, Greece, Italy and Romania Summary: The Balkans have long been a key route for various illicit goods and flows - drugs, firearms, human trafficking and human smuggling, etc. Since 2000 Greece became a key entry point and a source of 'illicit white' cigarettes. Upon entering Greece, the 'illicit whites' were further trafficked either to Italy and Western Europe or through Bulgaria and Romania to Central European markets. This was the onset of a resilient and hard to curb transnational criminal infrastructure. Apart from that Bulgarian organized crime is extensively involved in setting up clandestine factories for production of 'counterfeited' or 'illicit white' brands in various countries across the EU. Furthermore Bulgaria, Italy, Greece and Romania are the four top-ranking in the EU in terms of levels of perceived corruption according to the Control of Corruption indicator of the World Governance Indictors (WB, 2014), as well as according to the most recent Corruption Perception Index (Transparency International, 2016). Against this background, the current initiative aims are threefold: 1) to bring to light the institutional gaps impeding the effective response to the illicit trade of tobacco products and propose a method for evaluating institution's performance at regional level; 2) to examine the role of corruption as crime enabling factor for illicit trade of tobacco products, as well as suggest a method to assess it on regional level; 3) to advocate for more effective, evidence-based legislative and policy actions, and to put pressure on the relevant authorities in Bulgaria, Italy, Greece and Romania to step up their efforts to curb these organised crime activities and related corruption. The research initiative The illicit trade of tobacco products along the Balkan route: addressing institutional gaps and corruption is led by CSD group and is among the 32 projects, selected from more than 200 proposals in the first funding round of PMI IMPACT- a global initiative dedicated to support fight against illicit trade and related crimes. The research team involves experts from Bulgaria (CSD), Italy (Intellegit), Romania (SCE), as well as three independent criminology researchers from Greece. Over the next two years, the project will elaborate tools for performance evaluation and corruption risk assessment of law enforcement and revenue authorities with regards to illegal tobacco trade. Key points - The national tobacco policies in Bulgaria, Italy, Greece and Romania reflect the main trends and developments set by the international and EU regulatory mechanisms. However each country faces different challenges in the implementation due to differences in the institutional setup and administrative capacity. - The tobacco sector in the four countries has underwent very similar evolution, where following the liberalisation, the Big Tobacco producers hold between 80 % and 90 % of the market, although local producers still maintain their presence on national level. - The peak of the ITTP in the four countries was triggered by the economic crisis in 2008 - 2010, which led to 4 to 5 times increase in the consumption of illicit tobacco products. However, while Bulgaria and Italy eventually managed to stifle their illicit markets, Greece and Romania continue to face high levels of ITTP. - Greece, Italy and Romania are among the top five transit points in the EU and Bulgaria is an important regional transit point. There is a long history of well-established collaboration between the criminal networks of the four countries. - Three major categories of risks and vulnerabilities have been identified with regards to ITTP 1) Risks deriving from the overall political, institutional and legal environment in each country; 2) Risks related to the licit tobacco sector; 3) Risks related to the crime context in each country Details: Sofia: CSD, 2018. 28p. Source: Internet Resource: Policy Brief No. 80: Accessed October 5, 2018 at: http://www.csd.bg/artShow.php?id=18053 Year: 2018 Country: Europe URL: http://www.csd.bg/artShow.php?id=18053 Shelf Number: 152838 Keywords: CigarettesIllegal Tobacco Trade Illicit Tobacco Illicit TradeOrganized CrimeTobacco Industry |
Author: KPMG Title: Eurasian Economic Union Illicit Cigarette Report Summary: Key findings: Illicit cigarette consumption has grown rapidly in the Eurasian Economic Union from 2015 to 2018 - Illicit cigarette consumption rose from 0.6% to 6.8% of total consumption in the past 4 years, representing over 20bn cigarettes in 2018 - Had these cigarettes been sold legally in 2018, an additional 68bn RUB would have been collected in taxes (VAT & Excise) across the Eurasian Economic Union in 2018, with 99% of the taxes lost from Russia - A large proportion of the growth occurred in the Russian Federation, where non-domestic cigarette consumption increased from 0.7% to 8.7% of consumption, of which 90% was illicit. Widening price differences between countries and free movement of goods and people are two possible drivers behind the growth in illicit cigarette consumption - The price differences (in particular between Belarus and Russia) have increased by over 40%, making cigarettes from Belarus more affordable(с) - In addition, the establishment of the EEU (in 2015) enabled free movement of goods and people, reducing customs inspections between countries and removing limits on goods imported for personal consumption - The 8 billion Belarusian labelled cigarettes identified in Russia were not supported by the number of travellers buying for their own personal consumption, indicating that a high volume of cigarettes are contraband. Furthermore the seizures of millions of Belarusian labelled cigarettes in Russia indicated that these cigarettes are transported by criminal networks. Distributors of illicit cigarettes have grown to exploit the price differences, reduced affordability and the lack of personal allowance quotas when travelling between EEU countries, especially from Belarus to Russia - Belarus is the primary source of illicit cigarettes, with almost 8 billion of the 20 billion illicit cigarettes identified in this study coming from Belarusian trademark-owned manufacturers, whilst production capacity was reported at 29 billion cigarettes(4) which is not supported by domestic consumption (estimated at 16 billion) - Belarusian labelled cigarettes were identified across Russia, indicating that they are being purchased by consumers who are not travelling across the Belarusian border - In addition, 47% of C&C identified had no identifiable origin including counterfeit, illicit whites and cigarettes with suspicious Russian tax stamps, which have had no taxes paid in any jurisdiction. Some may be illegally manufactured inside Russia - Illicit cigarette smuggling has been shown to help enable Organised Criminal Groups (OCGs), using similar networks to sell other products and its rapid growth in EEU is unlikely to be any different, as profits can be high whilst penalties remain low. Throughout the report, our analysis has focussed on the following categories of cigarette consumption: Legal domestic consumption - Cigarettes legally purchased and consumed within the country of study, based on In Market Sales data provided by the tobacco industry Non-domestic legal (ND(L)) - ND(L) represents cigarettes which are purchased in another country but legally consumed in the country of study, through cross-border or tourism purchases. This represents 0.8% of total consumption in the EEU Illicit consumption - divided into three components: - Illicit Whites: Cigarettes that are usually manufactured in one country/market but which the evidence suggests have been smuggled across borders during their transit to the destination market under review where they have limited or no legal distribution and are sold without payment of tax - Contraband (Other): Cigarettes where the tax was paid legally in one country, but the cigarettes were taken to another country and re-sold without any applicable tax, mainly when the excise tax regimes in the source country are lower than the destination country. Many of these cigarettes originated from an EEU country and whilst they were legally transported (due to no legal personal allowance limits) they were then re-sold illegally - Counterfeit: Cigarettes that deliberately copy a legally traded brand, deceiving consumers who believe that they are purchasing this brand. Counterfeit was only identified by participating trademark owners in the Empty Pack Survey - Russian suspicious tax stamps: Cigarettes where further analysis has revealed that the packs may have been sold without the payment of tax, despite bearing domestic labelling Details: London: Author, 2019. 48p. Source: Internet Resource: Accessed June 28, 2019 at: https://www.stopillegal.com/docs/default-source/external-docs/eea-illicit-cigarette-report-2018-english.pdf?Status=Temp&sfvrsn=ab4677d7_2 Year: 2019 Country: Europe URL: https://www.stopillegal.com/docs/default-source/external-docs/eea-illicit-cigarette-report-2018-english.pdf?Status=Temp&sfvrsn=ab4677d7_2 Shelf Number: 156923 Keywords: AsiaCigarettes ContrabandCounterfeit Cigarettes Counterfeit Goods EuropeIllicit Cigarettes Illicit Markets Illicit Trade Organized Crime Tax Evasion Tobacco |