Illegal cigarette consumption in Cyprus continued to rise in 2025, reaching an estimated 16.3% of total cigarette consumption, according to a new report by KPMG conducted for Philip Morris International. The study found that approximately 160 million illicit cigarettes were consumed in Cyprus during the year, resulting in an estimated €27 million in lost tax revenue, up from €22 million in 2024.
Across the European Union, illicit cigarette consumption exceeded 10% of total market volume for the first time since 2014, with 41.8 billion illegal cigarettes consumed and an estimated €16.7 billion in lost public revenue. The report also noted that illicit heated tobacco products remain a relatively small segment, accounting for just 1.2% of total consumption.
