Cigarette trade news
Inside Chicago's war on illegal cigarettes
CopytoclipLink JTI constantly monitors developments in the illicit tobacco product market, which not only affects the industry but also has an impact on state coffers through losses in tax revenue, as well as creating instability in a production chain with overemployees in Italy, from tobacco growing to manufacturing and sales. The illicit tobacco product trade has evolved over time, becoming a phenomenon of a transnational nature operated by organised crime and terrorist groups.
A joint effort on a national and global scale between the private sector and law enforcement is therefore necessary to combat this problem. This is why JTI is always ready to assist the institutions in finding solutions together which will ensure the sustainability of the sector and the attractiveness of the national economy for investments. This begins with an overhaul of the current tax system for the taxation of tobacco, aimed at establishing a new proposal based on a programmatic approach which would ensure steady tax revenues for the state.
Illicit tobacco products are those for which no duties are paid and they can be divided into three main categories: Contraband Counterfeit Illicit whites Genuine products that have been diverted from legal sales channels by smugglers for sale in other countries without payment of domestic duties. Cigarettes manufactured illicitly under a registered brand name with the cigarette trade news of copying the legitimate product cigarette trade news deceiving consumers and to avoid paying duty.
They are produced without any respect for the many quality and safety standards that govern the legal tobacco industry. These are brands of cigarettes manufactured legitimately in a certain country, where their consumption is minimum. They are cigarettes manufactured for the sole purpose of being smuggled into other countries where they are sold illegally. The aim is to provide useful information for combating the counterfeiting of tobacco products directly to local units involved in the fight against the illicit trade.
If all the cigarettes sold on the black market were sold legally, the EU and its member states would make 10 billion euros annually. Data from the Guardia di Finanza, published in June on their th anniversaryconfirm an illicit phenomenon which has a huge impact on the community and on tax revenues: tons of foreign tobacco products were seized by Guardia di Finanza units between January and May
The situation needs to be addressed urgently with greater effort and enforcement, and has to be treated by the Government as a national crisis. We recommend a three-step approach to addressing such a critical issue: 1. Freeze tax increases on cigarettes this year, and review excise policies going forward This will help control the rapid slide towards the illegal trade by consumers increasingly priced out of legitimate purchases. Introduce regulatory and policy stability Extreme regulatory proposals such as plain packaging will only worsen the illegal cigarette trade in Malaysia, making it easier than ever for criminals to convincingly counterfeit cigarette packs.