Manufacturers who re-label cigarette rolling tobacco (RYO) for use in pipes to avoid higher taxes are costing the government billions, the Government Accountability Office (GAO) said in a report cited by Reuters.

Adding a few ounces of tobacco to small cigars so they qualify as low-tax large cigars is another form of evasion cited in the news story. GAO estimates USD 2.6 billion (EUR billion) to USD 3.7 billion in excise tax revenue was lost from April, 2009, to February, 2014, Reuters said. The report was the subject of a Senate hearing in which Finance Committee Chairman Ron Wyden criticized tax collectors for dragging their feet on stricter enforcement, the news agency reported.