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Tag: illicit cigarettes

  • Bangladesh Battles with Illicit Tobacco, Enforcement

    Bangladesh Battles with Illicit Tobacco, Enforcement

    Authorities in Bangladesh are facing renewed scrutiny over the enforcement of tobacco-related regulations, as a legal petition seeks updates on action taken against illegal shisha lounges in Dhaka. The filing, submitted to the Dhaka Metropolitan Police, requests details on raids, arrests, and compliance with a High Court directive issued in March mandating the closure of unauthorized lounges, amid claims that some establishments in areas like Banani and Gulshan remain operational.

    At the same time, enforcement efforts continue elsewhere, with officials in Kushtia destroying illegal tobacco products worth approximately Tk 2.5 crore ($225,000), including nearly 36 million sticks and units of cigarettes, bidis, and other items seized through anti-smuggling operations.

  • Indonesia Seizes 11M Illegal Cigarettes at Border Op

    Indonesia Seizes 11M Illegal Cigarettes at Border Op

    Authorities in Indonesia dismantled a large-scale illegal cigarette trafficking operation in East Nusa Tenggara, seizing approximately 11 million illicit cigarettes with counterfeit excise stamps. The case, uncovered through a joint operation involving police, customs, and immigration officials, highlights ongoing smuggling activity along the Timor Leste border, with estimated state losses exceeding IDR 12 billion ($696,000).

    Investigators said the network smuggled cigarettes by sea into the Atapupu area before distributing them across Timor Island, using multiple storage locations to support the operation. Four foreign suspects were arrested in connection with the case, which officials described as part of a structured, transnational network exploiting border vulnerabilities for large-scale illicit trade.

  • Smugglers Floating New Ideas to Get Tobacco into Latvia

    Smugglers Floating New Ideas to Get Tobacco into Latvia

    Authorities in Latvia say they continue to face significant volumes of illicit tobacco entering the country, with more than 44 million illegal cigarettes and over 21,000 kg of tobacco seized in 2025 alone. In the first quarter of 2026, customs officials intercepted an additional 1.37 million contraband cigarettes at border crossings, slightly down from 1.58 million during the same period the previous year, indicating continued but shifting smuggling activity.

    Officials say smugglers are adapting tactics to evade detection, increasingly using waterways such as the Daugava River to float concealed shipments, including cigarettes hidden in tractor tires or wrapped in waterproof materials and guided by GPS. Previously, organized groups also deployed weather balloons to transport contraband across borders, though enforcement efforts have curtailed that method. Authorities say the shift in techniques underscores the evolving nature of illicit trade networks, which continue to exploit both land and water routes despite heightened monitoring and cross-agency cooperation.

  • Philippines: Latest Crackdown Sinks $13M Illicit Operation

    Philippines: Latest Crackdown Sinks $13M Illicit Operation

    Philippine authorities dismantled a large-scale illegal cigarette manufacturing and distribution operation, seizing nearly 800 million pesos ($13 million) worth of raw materials and equipment. The Philippine National Police said the network had been operating since the third quarter of 2025 and was part of a broader illicit trade impacting government revenues.

    Officials warned that such operations significantly reduce excise tax collections intended for public services, including healthcare. Authorities have already taken similar enforcement actions in Luzon and plan to expand crackdowns to the Visayas region as part of ongoing efforts to combat the illicit tobacco trade.

  • Illicit Cigarettes Dominate South Africa’s Tobacco Market

    Illicit Cigarettes Dominate South Africa’s Tobacco Market

    Illicit cigarettes account for around 60% of South Africa’s market, according to new research from the University of Cape Town, highlighting a sharp rise from about 30% prior to the COVID-19 pandemic. The study found the surge represents a structural shift in the industry, with major players losing share while local producers linked to low-priced products have expanded significantly, selling cigarettes at levels suggesting taxes are not being paid.

    The findings also show illicit products are concentrated in informal retail channels and are disproportionately consumed by lower-income, heavy smokers, driven by cheaper pricing. Researchers say the scale of the illicit trade is undermining tax revenues and reshaping market dynamics, with calls for stronger supply chain controls and enforcement measures to address the issue.

  • Illicit Cigarette Trade Surges in Latin America and Canada

    Illicit Cigarette Trade Surges in Latin America and Canada

    Illicit cigarettes accounted for 31.9% of total consumption across Latin America and Canada in 2025 — equivalent to 77 billion sticks — resulting in an estimated $8.5 billion in lost tax revenues, according to a report released by Philip Morris Products S.A. The study, conducted by KPMG LLP, examined the Region of the Americas (excluding the United States) and found that the region now has the highest global incidence of illicit tobacco, driven by steep tax increases and regulatory pressures that have pushed consumers toward cheaper illegal products.

    The findings highlight growing fiscal, public health, and enforcement challenges, with markets such as Brazil, Panama, and Ecuador particularly affected, underscoring calls for more balanced regulation and stronger anti-illicit trade measures. Brazil has the region’s largest illicit market with 41.8 billion illicit cigarettes, while illicit cigarettes make up 89% of Panama’s market and 84% of Ecuador’s.

  • Illicits Cutting into Malaysian Sundry Shop Sales Beyond Cigarettes

    Illicits Cutting into Malaysian Sundry Shop Sales Beyond Cigarettes

    Sundry shops across Malaysia are losing customers to widespread illegal cigarette sellers, according to the Federation of Sundry Goods Merchants Associations of Malaysia. Its president, Hong Chee Meng, said illicit sales by unlicensed retailers, including outlets run by migrant workers outside the association, are undercutting legitimate family-run businesses that comply with regulations and contribute to government revenue.

    With legal cigarette prices ranging from RM12.40 to RM18.40 ($3.10 to $4.60) per pack versus RM3 to RM8 ($0.75 to $2) for illicit products, the price gap is drawing smokers away from compliant retailers. Hong said cigarettes are a key traffic driver for sundry shops, and when customers buy from illegal sellers, shops also lose add-on purchases such as drinks, snacks, and household goods, compounding the impact on small businesses.

  • 100,000 Illicit Cigarettes Seized at The Hague Supermarket

    100,000 Illicit Cigarettes Seized at The Hague Supermarket

    A coordinated inspection by the The Hague Economic Intervention Team uncovered 102,800 illegal cigarettes at a supermarket in Rustenburg Oostbroek, The Hague. The cigarettes lacked Dutch excise stamps, indicating unpaid taxes and violations of the Excise Act. Officers from Dutch Customs found the products hidden in concealed compartments inside the store and in two company vehicles, which were also confiscated after being linked to repeated illicit trade activity.

    The operation involved partners across the HEIT network, including municipal authorities, police, the food and consumer product safety authority, labor inspectors, and social services, reflecting a broader push to combat economic crime and “undermining” activity tied to illicit tobacco. Local sources indicated this was not the first time illegal cigarettes had been discovered at the business during inspections.

  • Philippine Farmers Hail Illicit Tobacco Crackdown

    Philippine Farmers Hail Illicit Tobacco Crackdown

    Farmers in the Philippines and local business groups welcomed the government’s intensified crackdown on illicit tobacco manufacturing and smuggling, following a series of enforcement operations. Organizations, including the Federation of Free Farmers, Federation of Philippine Industries, and the British Chamber of Commerce of the Philippines said recent raids and factory shutdowns send a strong signal that authorities are serious about protecting legitimate businesses, government revenues, and farmers’ livelihoods. The comments followed law enforcement actions that uncovered several abandoned illegal cigarette factories in Pampanga and seized equipment and materials valued at about ₱400 million ($6.8 million).

    Officials said the illegal facilities were capable of producing cigarettes worth up to ₱160 million per day. Authorities estimate that illegal cigarette production and smuggling cost the Philippine government around ₱30 billion ($510 million) in lost excise taxes in 2025 alone. Department of the Interior Secretary Jonvic Remulla warned that some illicit operations may have political or institutional backers, while enforcement agencies continue investigations to identify financiers and operators behind the networks.

  • Illicit Cigarettes Threaten Malaysia’s Micro-Businesses

    Illicit Cigarettes Threaten Malaysia’s Micro-Businesses

    The Malaysian Micro Businesses Association (MAMBA) highlighted the growing impact of illicit cigarette sales on local small enterprises, following NielsenIQ’s Illicit Cigarettes Study 2025. The study found that illegal cigarettes now account for 54.4% of total cigarette consumption, creating steep competition for micro businesses such as sundry shops, coffee shops, and neighborhood kiosks.

    With legal cigarettes costing RM18.40 ($4.60) and illicit ones as low as RM3 ($0.75), MAMBA Secretary-General Alvin Low said the wide price gap encourages consumers to bypass legitimate retailers, undermining micro-enterprises that comply with licensing, taxation, and health regulations. He stressed that this distorted market threatens the broader micro-business ecosystem, which comprises 97.4% of Malaysian businesses, and called for a balanced approach combining enforcement with measures to stabilize the legal market.