We must get the United States Postal Service (USPS) out of the tobacco delivery business..

April 6, 2009 - Representative Anthony Weiner and State Senator Jeff Klein released a report Sunday, April 5, showing that New York City is losing up to $150 million a year in tax revenue due to online cigarette sales.

H.R.1676 - Prevent All Cigarette Trafficking Act of 2009,
Sponsor Rep. Anthony Weiner [D, NY-9]. To prevent tobacco smuggling, to ensure the collection of all tobacco taxes, and for other purposes. The legislation will effectively end Internet tobacco smuggling by stopping shipments of cigarettes through the U.S. Postal Service. FedEx, UPS, and DHL have already agreed not to mail tobacco.

On April 1, taxes for cigarettes were raised, and are now about $4.50 per pack, bringing the price up to about $10 for a pack of cigarettes in New York City. Weiner said that the rise of taxes is causing an increase in incentives to avoid the taxes as well.

Senator Klein said that he’s found, over the years, that young people are able to purchase cigarettes over the Internet as long as they verify, by checking a box, that they are over 18 years of age.

“The way we use our cigarette taxes, in the state of New York, is to provide health benefits,” he said. “We are actually able to insure $1.5 billion New Yorkers through an insurance program for the poor through cigarette taxes.”

Weiner announced that the legislation they were trying to pass would ban the United States Postal Service from shipping cigarettes. FedEx, UPS, and DHL have already agreed not to mail tobacco, but Weiner says that the USPS has said they’d prefer to see this as a federal law before complying.

Reference: NYC Losing $150 Million Yearly From Online Cigarette Sales by Catherine Yang, Epoch Times Staff, 3/5/2009.

Related news brief: PACT Legislation now in the U.S. Senate Judiciary Committee..; U.S. House Passes Bill to Prevent Tobacco Delivery By Mail..; We must get the United States Postal Service (USPS) out of the tobacco delivery business.. and Protect Our Children - Make it illegal to use the U.S. Postal Service to deliver any form of tobacco product...