< In New York, a Black Market For Illegal Cigarettes Thrives
A Big Tax Increase Is Fueling a Rise in Sales Of Cigarettes Imported From Low-Tax States>
Ave, who won't give his last name, is waiting for them. Bundled against the cold in a red Sean John parka and a blue ski cap, he clutches a black plastic bag stuffed with one of New York's hottest illicit products.
"Newports, Newports. Cigarettes, cigarettes," he chants under his breath to passersby. Customers slip him $5 bills, and he gives each a green-and-white pack of smokes.
Ave's business is untaxed cigarettes smuggled in from other states, and he boasts he can sell 50 packs a night. "I go for shopping areas, wherever there's a large crowd," the 28-year-old says. "I make a good profit, enough to pay my bills."
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Why the boom? Last summer, the city boosted its excise tax on cigarettes to an eye-popping $1.50 a pack, from eight cents. New York state also raised its levy, to $1.50 from $1.11. The combined $3-a-pack wallop makes cigarettes here the costliest in the U.S., at about $7.50 a pack. On the street, $4 to $5 a pack is practically irresistible.
Updated Dec. 27, 2002 12:01 a.m. ET
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