Tobacco tax evasion in Western Balkan countries: tax evasion prevalence and evasion determinants

Background and objectiveTobacco tax evasion undermines the goal of tobacco taxes as a tobacco control measure to make tobacco products less affordable, increases the health risks for those who smoke and decreases the government revenue. This paper analyses the tobacco tax evasion in six Western Balkan (WB) countries: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia. The aim of this research is to estimate the size of the illicit market and identify the main determinants of tax evasion activities in the Southeastern European region.Data and methodsData from 2019 Survey on Tobacco Consumption in Southeastern Europe (STC-SEE) are used. STC-SEE provides uniquely comparable nationally representative data on smoking behaviour for adult (18–85 years old) population for each country. Tax evasion is defined on the basis of available information on tax stamps, health warnings, price and the place of purchase, in accordance with the previous research on tax evasion. In order to estimate the determinants of illicit purchases we use binary choice model of tax evasion.ResultsThe study finds that 20.4% of all current smokers in WB countries evade taxes on tobacco products, with evasion being much more frequent for hand-rolled (HR) tobacco (86.7%) than for the manufactured cigarettes (MC) (8.6%). While HR is predominantly illicit in all six countries, MC evasion varies significantly, with evasion being significantly higher in Montenegro and Bosnia and Herzegovina. Results further suggest that tax evasion is higher in the statistical regions where institutional capacities to tackle illicit trade are lower, in municipalities bordering countries with high MC evasion, as well as among smokers with low income, women and elderly. We also provide evidence that higher tobacco taxes and prices do not increase illicit consumption.ConclusionThe findings from the research suggest that in order to decrease tax evasion, governments should put additional effort to strengthen institutional capacities to tackle illicit tobacco markets. Furthermore, improving regional coordination in development and implementation of tobacco control policies, including the prevention of illicit market, is essential in lowering evasion in all WB countries. Finally, WB countries should regulate and enforce excise tax stamp requirements on the HR tobacco market to a much higher degree.

TOBACCO PRODUCTS MARKET: FISCAL AND REGULATORY ROLE OF TAXATION

Background.The tobacco taxation policy’s fiscal efficiency should be compre­hensively examined, taking into account both the criteria for the amount of the collected tax revenues to the budget system and the specific share of the hidden tax base, which is part of the shadow economy. The analysis of recent research and publications has shown that despite the availability of some scientific investigations, it is advisable to further develop the main provisions on the tobacco excise tax collection for Ukraine, taking the current market trends and the potential threats into account. The aim of this article is to assess the potential development challenges for the domestic tobacco market and to develop both scientific and practical proposals to increase the fiscal and regulatory effectiveness of the excise tax on tobacco and tobacco products. Materials and methods. In the course of research, the system approach, the methods of analytical estimation, synthesis, economic and mathematical modeling, and scientific abstraction were used. Results. The directions for the further improvement in the tobacco excise taxation practice were offered, taking into account its fiscal and regulatory aspects. The modern peculiarities of the development of the tobacco products market in Ukraine were determined. The main causes and consequences of the illicit excisable goods’ production and circulation have been studied. The excise tax potential index’s calculations without the implementation of systematic measures in the field of counteracting the illicit market were presented. The government policy’s vectors in the field of reducing the cigarette market’s shadow segment have been identified. Conclusion. Taking the excisable goods shadow market’s indicators and its expansion potential into account, the balanced adjustments of the state fiscal policy is important. Counteracting the illicit tobacco and tobacco products trafficking is an important element of the national and economic security strategy. It is advisable to systematize the reliable information on the prevalence of smoking, consumer preferences and the relevant products’ consumption intensity in the territorial context, and the illicit market share as well. On the part of the authorized state institutions, the priority measures are modeling the supply and demand for tobacco products; systematization of information on its illegal circulation; description of the modus operandi of the main participants in the shadow market of tobacco and tobacco products; assessment of institutional capacity, transparency and accountability of fiscal and other authorized bodies for counteracting illicit products trafficking.

European illegal puppy trade and organised crime

Organised crime groups’ involvement in illicit markets is a common focus of law enforcement and governments. Drug, weapon, human and wildlife trafficking (and others) are all illegal activities with link to organised crime. This paper explores the overlooked illicit market of puppies. We detail the state of knowledge about the organisation of the UK puppy trade, which includes irresponsible and illegal breeding of puppies throughout Europe and their often-illegal movement into the UK. In 2017, we conducted an analysis of hundreds of online advertisements in Scotland, 12 expert interviews, a stakeholder survey of 53 participants, and 40 focus groups across Great Britain. Our data suggest an organised illicit market running in parallel to the legal trade. We speculate as to whether at some point along the supply chain organised crime groups are responsible for the suffering and death of the puppies and the economic and emotional damage to ‘consumers’. Online monitoring and physical scrutiny at the ports must be improved to reduce non-human animal abuse. People buying puppies must also be made aware that their purchase could be profiting organised crime.

Organised crime poses evolving threats in Europe

Significance Combined with ongoing trends (such as digitalisation), existing problems (such as institutional corruption and drug trafficking) and new policy directions (including the green transition), lockdown measures and post-pandemic recovery strategies are accelerating illicit market linkage and change. The continent is facing significant and unprecedented challenges. Impacts Successful takedowns in a context of ad hoc crime structures will drive illicit market diversification, innovation and violence. European restrictions on raw plant materials from elsewhere will spur manufacture of synthetic drugs and local cannabis cultivation. London will maintain ties with Europol but loose access to the Schengen Information System will complicate law enforcement cooperation.

Personal Doses of Cocaine and Coca Paste are Adulterated in Cartagena de Indias (Colombia)

Knowledge of drug composition consumed on the streets and the identification and quantification of their adulterants is essential for understanding unexpected side effects, tracking routes, and drug profiling. Therefore, this work aimed to determine the purity and to identify and quantify the main adulterants found in personal doses of cocaine (perico) and coca paste (bazuco) in Cartagena de Indias (Colombia). The data collected in this study describe a first attempt to introduce the qualitative and quantitative analyses of adulterants present in street drugs in Cartagena de Indias to improve surveillance. Through gas chromatography coupled to mass spectrometry (GC-MS), the purity and adulterants were quantified in 45 personal doses of cocaine powder and coca paste. 100% of the personal doses in the city were adulterated; caffeine, phenacetin, and levamisole were the main adulterants identified in cocaine. Besides the above, lidocaine was also found in coca paste. The purity of cocaine varied from 8% to almost 70%, with caffeine ranging from 6% to 42%. In the case of coca paste, the maximum content of cocaine found was 60%, while some samples contained as little as 14%. The results are consistent with other research in terms of the widespread use of caffeine as an adulterant, but they also follow the growing trend of the use of levamisole and phenacetin. The wide range of cocaine content in samples sold in the illicit market could cause undesirable effects on cocaine users who do not know the exact intended dose for consumption; so, this study intends to make these results available not only to academic, public health, and national security agencies but also to tourists entering Cartagena de Indias, so that they are aware of what they are consuming and the risks to which they are exposed.

Moralizing the Production and Sale of Student Papers in Uganda

Sociologists have shown that moral understandings of market exchanges can differ between historical periods and institutional settings, but they have paid less attention to how producers’ moral frameworks vary depending on their unequal positions within both markets and institutions. We use interviews and ethnographic observations to examine the vibrant market of research shops selling academic work to students around two of Uganda’s top universities. We identify three groups of researchers—Knowledge Producers, Entrepreneurs, and Educators—who construct different professional identities and moral justifications of their trade, and who orient their market action accordingly. We demonstrate that these identities and moral frameworks reflect an interplay between the institutional contexts and the social class positions that researchers occupy within this illicit market. Knowledge Producers and Entrepreneurs both experienced a sense of “fit” with their respective institutional cultures, but the former now see their work as compromising ideals of research, whereas the latter capitalize on what they view as a broken system. Educators, disadvantaged at both institutions, articulate a framework countering the dominant institutional cultures and sympathetic to underperforming students. This approach illuminates how institutional contexts and individual class positions within them influence producers’ moral frameworks, leading to differentiation of the market.

Connections between trades and trafficking in wildlife and drugs

Whilst drug trafficking has been a concern for several decades, wildlife trafficking has only fairly recently garnered international attention. Often media coverage of wildlife trafficking links it to the illegal trade of drugs. This article analyses wildlife and drug trafficking connections of various kinds. The purpose is to reveal the overlaps and synergies of wildlife and drug trafficking, providing concrete examples of where these markets co-exist as well as intertwine based on literature and original fieldwork. It explores the question of ‘Why in some cases, an illicit market remains focused on a single commodity, whilst in others it accommodates a combination of illicit commodities?’ This study identifies different types of wildlife-drugs linkages, including combined contraband, camouflage, multiple trade lines, shared smuggling routes and transportation methods, barter trade, and laundering drug money. The article shows that illicit markets are complex and the examples of activities and transactions that are provided illuminate some of the different dimensions of converging and diverging trades involving wildlife and drugs.