Showing posts with label maryland. Show all posts
Showing posts with label maryland. Show all posts

Friday, September 30, 2011

Health Coalition Lobbies For Tobacco Tax Increase

The Maryland Citizens' Health Initiative has launched a campaign to raise taxes on all cigarettes for sale products in Maryland. Cigarette prices would increase by $1 per pack, and other cheap cigarette online taxes would increase at a corresponding rate.

More than 150 faith, community and health organizations have already endorsed the proposed tax, including the AARP, the National Association for the Advancement of Colored People (NAACP) of Maryland and the American Cancer Society.

The tobacco tax revenue would fund various state health-related programs, including tobacco-control programs and improved healthcare access for Maryland families.

"Not only is this good policy, it's good politics," said Vincent DeMarco, president of the Maryland Citizens' Health Initiative. "We all will benefit."

Tobacco lobbyist Bruce Bereano disagreed, and said the tax hike on tobacco is discriminatory and unwarranted.

"Smoking is legal and lawful among adults in Maryland," Bereano said. "If that's going to continue and be left as a personal decision among adults, then let's stop hassling and intimidating and jerking around adult smokers. Enough is enough."

Maryland last raised taxes on non-cigarette tobacco in 1999. Cigarette taxes have been raised several times since then, most recently by $1 in January 2008.

The tobacco tax campaign comes only a few months after the Health Initiative successfully lobbied to raise the tax on alcohol in April.

DeMarco said raising the cost of tobacco saves both lives and money. Smoking rates in Maryland declined by 32.6 percent between 1998 and 2009, which was double the national average.

DeMarco said the decrease in smoking cigarettes saved more than 70,000 lives and hundreds of millions of dollars in health care costs.

The current tax increase would not be the end of the campaign. Tobacco tax advocates would like Maryland to become a smoke-free state.

Bereano contended that raising the tobacco tax actually costs the state money because smokers leave the state to buy tobacco.

"It's not going to stop smoking cigarettes in Maryland ... [The smokers] are just going to be driven further from the state of Maryland to buy their smokes, and they'll buy their bread and butter and other things there," he said. "Maryland will lose revenue, it makes no sense fiscally."

Bereano said the people who may get hit hardest by the tax are people in cities who don't have personal transportation and cannot go elsewhere to buy tobacco.

DeMarco said the Health Initiative will continue to advocate for the tobacco tax if the legislature does not pass the increase in next year's session.

"If the legislature doesn't pass it, we are ready to make this a top issue in the 2014 election," DeMarco said.

Monday, September 26, 2011

Nine Indicted In Maryland For Cigarette Smuggling

Maryland officials on Thursday announced the indictments of nine people accused of cigarette smuggling in connection with a stepped-up effort to cut down on the illicit cigarettes online trade.

In the last fiscal year, Maryland’s comptroller’s office arrested 115 people for cigarette smuggling, double the number it arrested the year before, as officials see more people resorting to profitable black-market sales.

“There is an explosion of cigarette smuggling going on,” said Maryland Comptroller Peter V.R. Franchot, whose office enforces state cigarette and buy cigarette online tax laws. “I’m not sure if it’s the bad economy or the fact that Virginia has the lowest tax rate in the country and Maryland has one of the highest.”

Cigarette taxes in Virginia are 30 cents per pack, while in the District and Maryland, taxes are $2.50 and $2 per pack respectively. Cigarette smugglers profit from buying large quantities of discount cigarette online in Virginia and transporting them to states where the tax is higher, selling them to stores or even from the trunks of their cars and pocketing the difference in price, Mr. Franchot said.

The nine people who were arrested in Maryland after crossing into the state from Virginia with thousands of packs of cigarettes store in tow face charges of possession, transport and conspiracy to transport unstamped cigarettes. The penalty for the crime is a maximum of two years in prison and a fine of $50 per carton of cigarettes, Prince George’s County State’s Attorney Angela D. Alsobrooks said.

Officials announced the indictments outside the Prince George’s County Courthouse in Upper Marlboro in front of a large display of previously confiscated online cigarettes at the county courthouse. The display drew stares from passers-by, some of whom asked if officials were giving the packs away.

The nine people indicted were arrested in five unrelated incidents in July and August. In total, 14,875 packs of cheap cigarette online were seized. Maryland would have collected $29,750 in taxes if the packs were sold in the state, officials said.

Though investigators have not tied the nine people to any large-scale smuggling ring, they said gangs are more frequently forgoing participation in the drug trade for the black-market cigarette trade.

“It’s too darn lucrative for these groups to ignore,” Mr. Franchot said.

The persons indicted on the cigarette smuggling charges are: Jose Gilberto Perez, 53, of Baltimore; Eredania Perez-de-Hernandez, 41, of Baltimore; Maoze Abdallh Ibrahim, 26, of East Orange, N.J.; Abdoulaye Akmoudou, 41, of Newark, N.J.; Alicia Walker, 34, of Bloomfield, N.J.; Livingus Agubu, 39, of New York, N.Y.; Felix Cruz, 46, of New York, N.Y.; Feby Pledger, 45, of Far Rockaway, N.Y.; and Bernard Cribbs, 58, of Far Rockaway, N.Y.

The announcement came the day after a Prince George’s County police officer pleaded guilty to his role in a separate large-scale cigarette smuggling case.

The U.S. District Attorney’s Office for Maryland said former Prince George’s County police officer Chong Chen Kim, 43, of Odenton was involved in a cigarette-trafficking scheme that moved more than 17 million discount cigarettes and contributed to a tax loss of $2,661,240. Four other men, including another former county police officer, also have pleaded guilty in the case.

Officials said the cases announced Thursday and the officers’ cases were not related.