The Netherlands is losing an estimated €2.6 billion in annual tax revenue as more smokers purchase cigarettes and rolling tobacco abroad, according to tobacco industry association VSK. A new study by WSPM found that in 2020 the loss was €1.4 billion, but steep excise duty hikes in 2023 and 2024 have fueled cross-border buying and black-market sales.
VSK director Jan Hein Sträter said smokers are not quitting but shifting to cheaper alternatives in Germany, Belgium, Luxembourg, or even social media channels. Researchers estimate that about 40% of cigarettes and nearly 50% of rolling tobacco consumed in the Netherlands are now sourced abroad, compared to 25% just a year earlier.
The group urged the government to align tax rates with neighboring countries, warning that without action, billions in potential excise revenue will continue to slip away.
