Senator Kohl Introduces Bill to Combat Illegal Internet Cigarette Sales
Senator Kohl (D-WI) recently introduced a bill aimed at cracking down on the illegal sale of cigarettes over the Internet. The bill, entitled "Prevent All Cigarette Trafficking Act" (PACT), is similar to a measure introduced last Congress by Senator Hatch and bearing the same title. This legislation would strengthen the reporting requirements for interstate cigarette sellers and would increase criminal penalties for violations of reporting and state tobacco tax laws. In addition, the measure would give federal and state law enforcement officials more power to investigate and prosecute violators. And a new provision of the bill would prohibit the U.S. Postal Service from delivering tobacco products.
Speaking on behalf of his newly introduced measure, Senator Kohl said, "Illegal cigarette sales have become a cottage industry for groups trying to skirt state tax laws. Too often this diverts money that rightfully belongs in cash-strapped state budgets to the pockets of criminals and terrorist groups. We can’t let these insidious groups turn legitimate marketplaces, including the Internet, into a fundraising tool."
The measure has been referred to the Senate Judiciary Committee for consideration and AWMA will keep members apprised of any new developments with respect to this issue.
