Big Chinatown bust nets untaxed cigarettes
Deborah Booker • The Honolulu Advertiser
By Walter Wright
State investigators seized 1,400 cartons of cigarettes at a Chinatown store yesterday in the biggest raid so far under the new state tax stamp law.
Advertiser Staff Writer
Investigators seized 1,400 cartons of cigarettes at a Chinatown store yesterday in the biggest raid so far under the new state tax stamp law.
The Hawai'i Tax Foundation has said that a black market in cigarettes may cost the state more than $20 million in taxes a year.
Attorney General Earl Anzai said arrests yesterday on O'ahu and in other raids at Kekaha and Hanalei on Kaua'i could bring $5,000 fines.
In Honolulu, two women, 40 and 23, and a man, 60, who were arrested at Cheung Chau Trading Co. on Maunakea Street, were released pending investigation.
Employees declined comment and said the owner was with his lawyer.
Chief investigator Donald Wong said the state has confiscated thousands of untaxed cigarettes at about 20 locations statewide since April 1.
The state has taxed cigarette sales since 1997, but required the $1-per-pack stamp only this year.
Merchants had until April 1 to to sell unstamped packs, and faced felony charges if they had more than 3,000 unstamped cigarettes.
Deborah Booker • The Honolulu Advertiser
The state collected about $40 million in cigarette taxes in 1999.
Packages of cigarettes taken from the Cheung Chau Trading Co. did not contain a stamp like this one.
Anzai invited anyone with information about untaxed cigarette sales to call his investigators at 586-1240 or CrimeStoppers at 955-8300.
