Cigarettes mailed from foreign countries to U.S. residents cheat governments out of millions in tax revenue, California and New York say in the suit.
California and New York City sued the U.S. Postal Service on Tuesday to stop tens of thousands of cigarette packages from being mailed from foreign countries to U.S. residents, saying the smugglers are engaging in tax evasion while postal workers look the other way.
“Cigarette smuggling doesn’t just break the law — it endangers the health of countless Americans and enriches terrorists and organized crime,” New York Mayor Bill de Blasio said in a statement. ”Yet despite all of this, our nation’s own postal service has ignored the practice and enabled one of the biggest killers in our country. It needs to end, and we intend to be the ones to end it.”
”The Postal Service has turned a blind eye to the illegal shipment of cigarettes through its facilities, undermining our health laws and causing millions of dollars of tax losses to New York City,” Pestana said.The lawsuit said that smugglers capitalize on widely varying tax rates on cigarettes, and that the Postal Service ignores cigarette shipments sometimes labeled as “cigarettes” and fails to ban commercial cigarette shippers identified by the U.S. Justice Department.
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