Wednesday, June 11, 2008

Tax Free Cigarette Sales to Non-Indians Supporting Terrorist Groups

The sales of tax free cigarettes to non-Indians have led to a surge in tobacco smuggling and a consistent cash flow for global terrorist groups, according to a recently released congressional report.

The Committee on Homeland Security report states that "recent law enforcement investigations ... have directly linked those involved in illicit tobacco trade to infamous terrorist organizations such as Hezbollah, Hamas and al Qaeda."

The illegal trade hinges on evasion of tobacco excise and sales taxes, the report says, with "the smuggling networks [relying] primarily on access to the Native American Indian reservations for tax-free cigarettes - for obvious financial reasons."

Read more about his here.