Store sells imported cigarettes at half-cost

by Mindy Aguon

Guam - Nearly two months ago, the cost of cigarettes was increased as additional taxes were implemented to deter people from smoking.  The increase in taxes has resulted in an increase in local business establishments making big bucks selling illegal smokes.

Department of Revenue & Taxation Director Art Ilagan said, "When they can't make money because tax laws have changed, of course they're going try to make money through other ways, which may be illegal." And that's exactly what some local businesses are doing.

A month ago Rev & Tax officials confiscated cartons of cigarettes from Valencia's Wholesale and Retail Store after they were found selling cigarettes from the Philippines.  Although they were put on notice, that it is illegal to sell those particular smokes, apparently that didn't deter the business from making some extra cash by selling the cigarettes again.

KUAM News got footage this morning of smokes from the Philippines being sold for $2.95 a pack, then showing Rev & Tax officials the cigarettes we purchased.  Said Ilagan in reaction, "It clearly says its for domestic use (in the PI) and from where it was purchased that's where it should be sold, not transported and sold in a US territory or in the United States.  So this is clearly a violation of the law."

By the time KUAM returned this afternoon, we saw numerous customers walking out empty handed, as the store had run out of the PI cigarettes. 

Even with signs posted clearly reading "Out of PI cigarettes, sorry for the inconvenience", Valencia's is selling legitimate cigarettes for $6.25 a pack.  The $2.95 cigarettes from the Philippines clearly state they are for domestic sale only, not for export.  Rev & Tax officials say they are also concerned that the cigarettes do not include the U.S. Surgeon General warning that is required advising of the dangers of smoking.

While the department is mandated to ensure local establishments are selling the legal ones, Ilagan admits they don't have the resources for regular enforcement.  But Rev & Tax puts out a stern warning for those businesses selling illegal smokes, as Ilagan said, "Beware that if you're in violation of these laws we may withhold your renewal of your licenses...at least to sell cigarettes."