Wednesday, July 13, 2005

New Tobacco Fee Could Be A Smuggler's Dream

"And some of the smuggling is believed to be supporting terrorist networks in the Middle East.'
July 13, 2005
(AP) St. Paul If lawmakers approve a 75-cent tobacco fee to the price of each pack of cigarettes, Minnesota could become a land of opportunity for smugglers, a report suggests.

With the new fee, Minnesota would have the highest state tobacco levy in the Upper Midwest and the 12th-highest in the nation.

Such disparities among the states have created a lucrative incentive for smugglers in recent years, according to a congressional study and federal authorities. And some of the smuggling is believed to be supporting terrorist networks in the Middle East.

Gov. Tim Pawlenty proposed the fee on tobacco sales to break a budget logjam in the Legislature. It would increase Minnesota's levy on a 10-pack carton of cigarettes to $12.30. That's compared with $4.60 per carton in Wisconsin and $8.70 per carton in Iowa.

The House and Senate plan to vote on the measure Wednesday.
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