The European Court of Auditors (ECA) says the European Union lacks reliable data on the size and impact of the illicit tobacco market and that fragmented national rules and weak coordination are leaving gaps that criminal groups can exploit. Euractiv reported that the auditors estimate the illicit tobacco trade costs the EU and its member states about €13 billion in lost revenue annually, although the ECA cautioned that the estimate should be treated carefully. Euractiv also highlighted the ECA’s criticism of limited transparency around bilateral agreements between EU governments and tobacco companies to combat illicit trade.
EUobserver reported that the ECA found one in 10 cigarettes made in the EU is either illegally produced or smuggled, while vapes and heated tobacco products account for 13% of the illicit market by value. EUobserver also said the European Anti-Fraud Office helped prevent €178 million in lost tax revenue in 2025 and that the European Commission has accepted most of the ECA’s recommendations but rejected some proposals, including a coordinated EU monitoring system and a framework for assessing member states’ effectiveness in fighting illicit tobacco.
