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Tag: illicit tobacco

  • Illicit Cigarette Market Climbs to 16% in Cyprus

    Illicit Cigarette Market Climbs to 16% in Cyprus

    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.

  • PM India Calls to Disrupt Illicit Tobacco Ecosystem

    PM India Calls to Disrupt Illicit Tobacco Ecosystem

    A new industry update from the EU-ASEAN Business Council highlights the continued scale of illicit tobacco trade in India and across Southeast Asia, underscoring growing concerns over smuggling, counterfeit products, and unregulated nicotine markets. According to the Tobacco Institute of India (TII), illicit cigarettes account for nearly one-quarter of India’s domestic cigarette market, resulting in estimated annual revenue losses of around Rs. 23,000 crore ($2.4 billion). The report coincides with World Anti–Counterfeiting Day remarks from Philip Morris India, which reiterated calls for stronger enforcement and industry collaboration to combat illegal tobacco flows.

    Broader regional data from EU-ABC and Euromonitor International show the illicit tobacco market across ASEAN-6 generated an estimated $12.6 billion over 2024–2025, with illicit cigarette volumes rising 14% and illicit e-vape sales increasing 24% in the past year. Additional intelligence cited in the update points to a rapidly expanding global illicit nicotine ecosystem, including a multi-billion-dollar illegal e-cigarette market, alongside continued enforcement actions in India such as large-scale seizures of prohibited vaping devices and cigarette shipments. PM India said the findings reinforce the need for stronger track-and-trace systems, cross-border enforcement, and coordinated policy responses to curb the growing black market.

  • UK Could Shut Down Stores Selling Illicit Products for a Year

    The UK government announced plans today (June 10) to extend closure orders for businesses linked to criminal activity, including retailers selling illegal tobacco and vaping products, following a series of BBC investigations into organized crime on British high streets. Home Secretary Shabana Mahmood said that under the proposed changes, authorities in England and Wales would be able to shut offending premises for up to 12 months, double the current maximum closure period of six months. The Home Office said the longer closures would give enforcement agencies more time to gather evidence, pursue prosecutions and prevent rogue operators from quickly reopening.

    The move has been welcomed by Trading Standards officials and industry observers who have argued that existing powers are insufficient to tackle persistent illegal tobacco and vape sales.

    “This is a welcome step from the government,” said Dr Marina Murphy, senior director of scientific affairs at Haypp. “Too often, we hear of corner shops or mini-marts caught by the authorities selling illicit products simply carrying on with their illegal activities immediately afterwards. The penalty for the illegal activity was simply not a deterrent. This has been a source of frustration for both enforcement authorities and responsible retailers. The potential to issue a 12-month closure order on a business is a much more significant penalty and will make those engaged in illegal behavior think twice.”

    The announcement follows reports linking some convenience stores, vape shops and barbers to illicit cigarette sales, drug trafficking, money laundering and illegal working. The government said the extended closure powers will form part of a broader crackdown on organized crime in retail settings, alongside a newly announced £30 million High Street Crime Unit. The legislation is expected to be introduced later this year and come into force in early 2027.

  • Pakistan Intensifies Illegal Tobacco Crackdown

    Pakistan Intensifies Illegal Tobacco Crackdown

    Pakistan continues to step up enforcement actions against illicit cigarette manufacturing and non-duty-paid tobacco products, with advocacy group ACT Alliance Pakistan praising recent government efforts led by the Federal Board of Revenue (FBR). The group said ongoing operations targeting smuggled brands, counterfeit tax stamps, and violations of the Track and Trace Systems are aimed at protecting tax revenue and formal businesses, estimating that the illegal cigarette trade costs the country more than Rs300 billion ($1.1 billion) annually.

    ACT Alliance Country Director Mubashir Akram said sustained enforcement is essential to prevent tax evasion networks from undermining the formal economy, adding that illicit trade is increasingly structured across manufacturing, distribution, and retail channels. He also warned that regulatory pressure must be consistent rather than episodic and called for stronger coordination among enforcement agencies, including Customs, Inland Revenue, and provincial authorities. The group further argued that tackling illicit tobacco is linked to broader investor confidence, stating that perceptions of enforcement effectiveness influence both domestic and foreign investment decisions.

  • JTI, Authorities Trying to Dent Malaysia’s Illicit Market

    JTI, Authorities Trying to Dent Malaysia’s Illicit Market

    Japan Tobacco International said the illicit cigarette trade remains a major challenge in Malaysia, with counterfeit tax stamps and increasingly sophisticated cross-border smuggling operations complicating enforcement efforts. According to JTI Malaysia, the share of illicit cigarettes carrying counterfeit Malaysian tax stamps rose from 8.7% in 2023 to 16% in January 2026, the highest level recorded. The company cited a recent enforcement operation in the Philippines that uncovered counterfeit Malaysian tax stamps allegedly intended for the Malaysian market.

    JTIM estimated the country’s illicit cigarette incidence rate at 56.7%, representing roughly RM4 billion ($1 billion) in lost government revenue. Company executives said affordability remains a key driver of illicit trade, warning that rising logistics costs, raw material inflation, and potential excise tax increases could widen the price gap between legal and illicit products. The company also pointed to growing consumer migration toward alternative nicotine products such as vapes, which currently face lower taxation levels than cigarettes.

    JTIM said policymakers are evaluating stronger deterrence measures, including digital tax stamps designed to improve supply-chain tracking and real-time product authentication. The company also called for a more balanced tax framework across nicotine categories, advocating for vape taxation to align more closely with heated tobacco products rather than combustible cigarettes.

  • South Australia Reports Record-Low Smoking, Rising Illicit Concerns

    South Australia Reports Record-Low Smoking, Rising Illicit Concerns

    South Australia reported record-low smoking rates as part of its Tobacco Strategy 2023–2027, with daily smoking falling to 7.5% in 2025 from 10.6% in 2020, according to the latest government progress report. Declines were also recorded among younger adults, middle-aged populations, and people living with mental illness, while the average age of smoking initiation increased to 17 years. State officials credited legislative reforms, public health campaigns, and expanded enforcement efforts for progress, while emphasizing ongoing investment in anti-vaping initiatives and illicit tobacco crackdowns.

    However, the report also highlights significant ongoing challenges for the tobacco and nicotine sector. Rising youth vaping rates remain a concern despite stricter regulations, and authorities estimate illicit tobacco and e-cigarette products now account for roughly 55% of Australia’s total market, underscoring the scale of illegal trade and enforcement difficulties. The government signaled that additional reforms targeting illicit supply chains and organized crime are under consideration, suggesting further regulatory pressure ahead for both legal tobacco and alternative nicotine product markets.

  • BATB Sales Choked by Taxes, Illicits

    BATB Sales Choked by Taxes, Illicits

    British American Tobacco Bangladesh reported a sharp downturn in first-quarter FY2025-26 performance as higher tobacco taxes, consumer downtrading, and rising competition from illicit cigarettes weighed heavily on sales. Domestic cigarette volumes fell 14% year-on-year, dragging gross revenue down 10.7% and net revenue down 21% as the effective tax burden climbed to 84.1%.

    Industry estimates suggest illicit cigarettes now capture up to 18% of the market, intensifying pressure on compliant manufacturers. While gross margin improved to 56% on lower cost of sales, operating expenses surged more than 40%, and operating cash outflow widened amid rising inventories and higher short-term borrowing. Non-core revenue streams offered little support, with cigarette exports remaining at zero for a third straight quarter and leaf export volumes falling sharply.

  • Imperial Backs UK’s Push to Fight Organized Crime

    Imperial Backs UK’s Push to Fight Organized Crime

    Imperial Brands backs new Government crackdown on illicit trade to protect honest retailers

    Imperial Brands has welcomed the UK Government’s new £30m High Street organised crime unit[1], designed to tackle illicit trade and support law-abiding retailers across the UK.

    The move follows growing concern around the scale of criminal activity operating through some high street outlets, with illegal products undercutting legitimate businesses and distorting fair competition amongst retailers.

    Under the plans, offending premises will face increased enforcement action, including raids, closures and asset seizures, with additional funding provided to Trading Standards teams.

    Imperial Brands believes this step will help level the playing field for responsible retailers who operate within the law and serve their local communities.

    James Hall, Anti-Illicit Trade Manager, Imperial Brands, said:

    “Honest retailers are being undermined every day by illegal operators selling illicit and unregulated products.

    “Stronger enforcement is essential to protect those doing the right thing and to restore a fair playing field across the high street.

    “We welcome this action and will continue working with retailers and authorities to help tackle illicit trade.”

    He continued: “As a business committed to the highest possible standards in manufacture and retail practice, we have always stood with ethical retailers who do the right thing when it comes to sourcing and selling tobacco and nicotine products.”

    Illicit tobacco and nicotine products are increasingly being sold through a range of outlets, including some convenience stores, vape shops and other high street premises.

    This impacts not only customers, suppliers and government revenues but also the viability of legitimate local retailers, many of whom are already operating in a challenging economic environment.

    Imperial Brands continues to work closely with Trading Standards, law enforcement agencies and retailers to raise awareness, support compliance and help identify illegal activity.

    The company says sustained enforcement, combined with retailer education and collaboration, will be key to tackling the issue long term and protecting responsible businesses. As illicit trade becomes increasingly organised and sophisticated, robust enforcement and meaningful penalties are essential to protect legitimate retailers and local communities.

    Imperial Brands has long called for stronger enforcement action, tougher penalties, and greater support for Trading Standards to help tackle illicit trade and protect responsible retailers.

    Imperial Brands strongly encourage retailers to report any potential illicit trade activity in their area to our sales teams, who can then report it on our dedicated trade platform. Alternatively, retailers can contact us directly through email suspectit.reportit@uk.imptob.com or our anti-illicit trade hotline on 0800 049 5992. 

    [1] https://www.bbc.co.uk/news/articles/ce3pzwx449no

  • Singapore’s Illicit Vape Trade Generated $8.1M Despite Ban

    Singapore’s Illicit Vape Trade Generated $8.1M Despite Ban

    A new report by the EU-ASEAN Business Council and Euromonitor International estimates Singapore’s illegal vape market generated S$10.4 million ($8.1 million) in revenue between 2024 and 2025, contributing to roughly S$156 million ($121.7 million) in lost government revenue from illicit tobacco sales. Despite Singapore’s 2018 vaping ban and stricter penalties, authorities continue to intercept large shipments, including a February seizure of e-vapes worth over S$1.1 million ($858,000). Singapore Customs also reported sharp rises in duty-unpaid cigarette seizures in 2024 and 2025, underscoring the persistence of illicit trade even as the country maintains one of the region’s lowest rates of illegal cigarette consumption.

  • Philippines Flagged ‘Elevated Risk’ for Illicit Cigarettes as Price Gaps Grow

    Philippines Flagged ‘Elevated Risk’ for Illicit Cigarettes as Price Gaps Grow

    The Philippines has been identified as an “elevated risk” market for illicit cigarettes, with illegal products accounting for 25.3% of total sales last year and projected to rise to 28.9% by 2028, according to a Euromonitor International study commissioned by the EU-ASEAN Business Council. The report estimates the government lost nearly $980 million in 2024 and about $1.1 billion last year due to the illicit cigarette trade, while illegal e-vapes, which make up 86% of the market, caused an additional P23 billion ($400 million) in losses from 2024 to 2025.

    Researchers cited price-sensitive consumers, porous maritime borders, established regional smuggling routes, annual excise tax hikes of 5%, and enforcement challenges as key drivers, with illicit products increasingly imported from neighboring ASEAN states and China. The study also highlighted the growing role of digital platforms such as Telegram, WhatsApp, and Facebook Marketplace in distributing illegal tobacco, alongside traditional sari-sari stores and street vendors, and warned that paper-based tax stamps are easily counterfeited, recommending a shift toward digital tax verification systems to better protect revenues and track the trade.