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Action on Smoking and Health
A National Legal-Action Antismoking Organization Entirely Supported by Tax-Deductible Contributions
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WHO Holds Tobacco Firms Responsible For International Cigarette Smuggling
[08/07-1]
Excerpts from: WHO tells tobacco firms to act against smuggling
Reuters
[08/06/03]
The World Health Organisation (WHO) said on Wednesday there was compelling
evidence tobacco firms played a compliant role in global cigarette smuggling
and that governments must hold them accountable.
In a new report focusing on the trade in Iran and Iraq, the WHO estimates one-third
of internationally exported cigarettes are lost to smuggling, a $25-30 billion
tax loss to governments.
The WHO said smuggling allows multinational tobacco firms to sidestep trade
restrictions and embargoes while fueling consumption and pressuring governments
to cut taxes.
It also gives them entry to closed markets because it squeezes a state monopoly and forces the government to allow imports. This is what the industry did in Iran where the market opened last year, the WHO said.
The report said that the way to slash smuggling is to control the supply of cigarettes rather than lower taxes.
WHO recommended cigarette firms be forced to mark packages to identify who made them, where and when. They should also show the chain of wholesaler, exporter, distributor and end market.
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