United States
In the United States each of the fifty states taxes cigarette packs at a different price. In 1992 states charged an average of 25 cents. By January 2002 that average increased to 45 cents. Six months later states, trying to compensate for budget deficits, raised their cigarette taxes to an average 54 cents. According to John D'Angelo of the U.S. government's Bureau of Alcohol, Tobacco, and Firearms (ATF), there is a "direct relationship between the increase in a state's tax and an increase in illegal trafficking." This is true with all psychotropic substances, the more the state tries to repress the trade with a legal or illegal substance, the higher the prices and with them the profit margins become. The U.S. government foiled funding operations by Al Qaeda in New York in 1999 and Hezbollah in North Carolina in 2002.
It has been reported that smuggling one truckload of cigarettes within the United States can lead to a profit of US$2 million.
Read more about this topic: Cigarette Smuggling
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