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Cigarette manufacturers operating within the BBK are exempt from tobacco excise and value-added tax provided their products are sold within the zone, but authorities say some producers and traders exploit the system by illegally transporting untaxed cigarettes to other parts of Indonesia where tobacco products are subject to excise duties

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The popularity of water pipe smoking appears to be stimulated by the social nature of the activity, as well as the unfounded assumptions of relative safety compared to cigarettes

BAT believes FDA should be employing its most powerful enforcement tools on the worst offenders without delay, Wheaton said