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An internal Phillip Morris document considers the desirability of smuggling in this light: Todays taxation of imported cigarettes [in Iran] is dominated by a specific duty of $7.70 per thousand and a Commercial Duty of $2.60 per thousand, which together account for over 90% of the tax burden While the specific duty structure is favourable, we have demonstrated to the Iranian monopoly that the excessively high level of duty encourages smuggling, estimated at one third of the market and that the optimum duty level is lower (World Health Organization, 2001, p

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