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.