Black market cigarette smuggling and sales meant an estimated 1.8 billion Kč ($90 million) in lost tax revenues in 2006, according to Czech customs officials. (Právo, p. 3)
Czech politicians are considering raising the excise tax on cigarettes to help balance the national budget. Customs officials say pushing the cigarette tax up will cause an increase in black market activity. Illegal high-speed production lines are widespread, they say. Operators focus on making packaging that mimics famous brands, they say.
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