The European Commission has said it is not possible accurately to quantify revenue losses due to the illegal trade in tobacco products.
The Commission was responding to questions posed by the Spanish member of the European Parliament, José Ignacio Salafranca Sánchez-Neyra, who prefaced his questioned by saying that Tobacco smuggling was one of the leading types of fraud creating huge losses for the EU budget.
‘With that in mind,’ he said, ‘can the Commission state:
1) ‘Whether it is taking any measures, in conjunction with the member states, to curb this illicit practice?
2) ‘Whether it has any figures/percentages for the amounts lost due to fraud? If so, what were the figures for 2017?’
In answer to the first question, the Commission said that, in 2013, it had adopted a comprehensive strategy to combat the illegal tobacco trade, as well as an Action Plan that was implemented in close co-operation with member states. ‘A report on the progress in implementing such strategy was presented to the European Parliament and the Council in 2017,’ it said. ‘The Report identifies possible areas for further action by the EU and member states and indicates that the Commission will present follow-up initiatives in 2018, following a consultation with the relevant stakeholders.’
In answer to the questions under 2); the Commission said it was not possible ‘to accurately quantify revenue losses due to clandestine activities’. ‘Therefore, the Commission does not have any official figures for the amounts lost due to cigarette smuggling,’ it said. ‘Purely to give a sense of the possible order of magnitude, it has been estimated that revenue losses could amount to as much as €10 billion annually.’
Smuggling losses unknown
