Tobacco products face varying levels of taxation in different
locations, creating opportunities and incentives for illicit trade.
Cigarettes are taxed at the federal, state, and in some cases,
local levels. According to industry representatives, taxes and
other fees make up significant components of the final price of
cigarettes, averaging 53 percent of the retail price. This book
examines incentives that are important for understanding
cross-border and illicit trade in tobacco products; and different
schemes used to generate profits from cross-border and illicit
trade in tobacco products.
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