PUBLIC TESTIMONY
Testimony by Jacqueline Tellez, Representative of New York Association of Wholesalers And Distributors
2:56:02
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3 min
Jacqueline Tellez, representing the New York Association of Wholesalers And Distributors, testified about the illegal sale of untaxed cigarettes and flavored e-cigarettes in unlicensed stores throughout New York City. She highlighted the significant financial loss to the city and state, as well as the broader implications for public safety and the legal market.
- Illegal cigarette trade is costing New York City and State over $2.5 billion annually, totaling $37.5 billion over the past 15 years.
- The association's sting operation and first alert program identified thousands of locations suspected of selling illegal products.
- Tellez urged the council to take decisive action, enforce existing laws, and employ stringent penalties on violators to reclaim the billions lost to the illegal marketplace.
Jacqueline Tellez
2:56:02
Thank you, everyone, for your for the opportunity to test Sify today.
2:56:07
My name is Jacqueline Telles, and I am representing the New York Association of Wholesalers And Distributors.
2:56:13
Today, I want to draw attention to the same critics show that Mister Hack brought to your attention a few minutes ago.
2:56:20
And that is the legal sale of untaxed cigarettes and flavored ecigarettes in unlicensed stores throughout the New York City.
2:56:27
Our sting operation, which we conduct a few years ago, revealed a reality that is illegal cigarette trade is costing the city and the state of New York over $2,500,000,000 annually.
2:56:38
Over the past 15 years, this amounts to a staggering loss of $37,500,000,000.
2:56:44
This is not just a financial issue.
2:56:46
It is a crisis that demands urgent action.
2:56:49
At the New York Association of wholesalers and distributors, we believe in maintaining a fair and free market where businesses can thrive based on merit and competition.
2:56:57
However, the rapid sale of illegal cigarettes is eroding this foundation.
2:57:01
It diverts potential profits from legitimate businesses, funds criminal activity, and undermines the rule of law.
2:57:08
Through our revitalized first alert program, we identified thousands of locations across the city suspected of selling illegal products.
2:57:15
We gave this report to the city and state, and we are thrilled that the city is acting and closing down these stores.
2:57:20
Our undercover where they've documented their findings revealing revealing that while some shops operate within the law, the majority do not.
2:57:28
This legal activity occurs in broad daylight showcasing a blatant risk disregard for our laws.
2:57:33
We need to finish the job and shut down all of these stores so the legal trade can take back the marketplace.
2:57:39
When we shut down illegal stores, consumer affairs must open up the market to legal shops and terminate the moratorium on cigarette licenses because that policy defies logic.
2:57:49
The city went from 10,000 cigarette lessons to less than 5000 which hurts the legal distribution channels and enhances the legal channels.
2:57:56
All cigarettes and vapor products should be brought in should be bought brought.
2:58:01
But in brick and mortar stores where we collect the taxes on these products.
2:58:05
The consequences of this illicit trade are far reaching.
2:58:08
Not only are we losing billings and tax revenue, but we are also witnessing the rise of organized crime, criminal enterprises are capitalizing on the high taxes in New York by smuggling cigarettes from state with lower taxes.
2:58:21
This illicit market poses a significant danger to our public safety and national security.
2:58:26
Revenue generated from illegal cigarette sales open orphan funds violent groups and criminal organizations contributing to a cycle of violence and instability.
2:58:36
We are at a crossroads.
2:58:38
Either we uphold our laws and restore integrity to our markets, but we allow these illegal operations to continue unchecked further endangering our communities.
2:58:46
We urge this council to take decisive action against the sale of illegal untax cigarettes or flavored e cigarettes.
2:58:53
By enforcing assisting laws and employing stringent penalties on viral letters, We can begin to reclaim the 1,000,000,000 of dollars in the cost of this illegal marketplace.
2:59:02
Let us work together to eliminate the scourge from our streets.
2:59:05
Our mission is clear to ensure that our illegal cigarettes is removed from our city protecting both our economy and our communities.
2:59:13
Thank you very much for your consideration.
