I BELIEVE that taxes on cigarettes are high enough and do not need to be further increased in the next budget because they will make the illicit trade on tobacco products grow bigger and cause more loss of government revenue due to smuggling activities.
With every increase in import tax and excise duty on cigarettes, the profit incentive for smuggling becomes more attractive. Profits would be big enough for the crime syndicates to pay off all the enforcement units at the various border points and still make them rich. They are so rich that they can even buy titles from the federal and state awards.
