Cigarette Smuggling in the European Union - Philip Morris won't have to pay.
On May 22nd 1995 the General Manager of the Italian State Monopolies, Ernesto Del Gizzo, transmitted to the SECIT (the Italian Tax Inspectors Office), a report on the unpaid tax on Philip Morris revenues in Italy: a total of 60,591 Billion lire (37.5 Billion dollars) over a 20-year period. So how much was the total amount of unpaid taxes in all the European Union countries combined?
Del Gizzo added that income from cigarette smuggling in Italy, thanks to the profits on products passed on through the illegal market, amounted to a net annual profit for the multinational manufacturer of about 1,100 billion lire (650 million dollars).
On July 9th 2004 an important agreement was signed by the EU and Philip Morris, the leader of European smuggling. The tobacco giant agreed to pay 1.2 Billion dollars, in instalments over a ten-year period and interest free, to bury the hatchet on all the past activities. Why so little? Read more »
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Imagine if a new, consumable product containing arsenic, formaldehyde and ammonia was introduced into the market, but federal law wouldn't let the government do anything about it. Such a product already exists – cigarettes. And under current law, the federal government cannot take action to reduce or eliminate the dangerous chemicals additives in cigarettes.