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  • Greece Fears EU Tobacco Tax Hike Will Fuel Smuggling Surge

    Greece Fears EU Tobacco Tax Hike Will Fuel Smuggling Surge

    Greece is warning that the European Commission’s sweeping proposal to raise tobacco taxes could trigger a sharp rise in cigarette smuggling, undermining both revenue and public health goals. The reforms — part of the EU’s effort to modernize its Tobacco Taxation Directive and introduce a new European levy — could push the average price of a cigarette pack in Greece from €4.60 to €7.00, an increase of more than 50%.

    At the Economic and Financial Affairs Council (ECOFIN) meeting, Greek Finance Minister Kyriakos Pierrakakis cautioned that steep excise hikes would “lead to a rise in smuggling,” citing Greece’s experience and its porous borders with non-EU countries, a key transit point for illicit tobacco. He warned that drastic price differences across regions would create new incentives for cross-border trafficking and black-market trade, threatening legal retailers and state revenues alike.

    Greece, which already has one of the highest smoking rates in the EU at around 30%, is particularly vulnerable to illicit trade. The government argues that the proposed tax levels could push many smokers toward cheaper, untaxed cigarettes, further expanding an underground market that already costs the country millions in lost revenue. To prevent this, Athens is advocating for a more moderate tax path, a longer adjustment period, and weight-based taxation for new nicotine products — balancing fiscal goals with the urgent need to curb smuggling.

  • EU Tobacco Tax Would Worsen Cyprus’ €22M Illicit Losses

    EU Tobacco Tax Would Worsen Cyprus’ €22M Illicit Losses

    Cyprus joins 11 other EU member states in opposing the European Commission’s plan to dramatically increase tobacco taxes, as officials warned the move could worsen the country’s growing illicit cigarette trade, which already costs €22 million annually in lost revenue. At 29%, Cyprus has the seventh-highest smoking rate in the EU.

    The proposal, discussed at the Economic and Financial Affairs Council in Luxembourg, would nearly triple minimum excise duties on cigarettes and, for the first time, introduce EU-wide levies on e-cigarettes and heated tobacco products. Under the plan, minimum cigarette taxes would rise from €90 to €215 per 1,000 cigarettes, pushing the price of a pack in Cyprus from €4.50 to as much as €7.50, while hand-rolling tobacco would almost double in cost. Next-generation nicotine products would face a 45% minimum tax from 2028, increasing to €88 per 1,000 units by 2032.

    Cyprus already faces a mounting smuggling crisis, with illicit cigarette consumption rising to 14.3% in 2024, up from 11% the previous year—equal to 130 million illegal cigarettes consumed. Across the EU, illicit consumption reached 38.9 billion cigarettes, causing €14.9 billion in lost revenue.

  • Tobacco Farmers Biometrically Registered in Zimbabwe

    Tobacco Farmers Biometrically Registered in Zimbabwe

    Zimbabwe has biometrically registered more than 113,000 tobacco farmers since the program began earlier this year, as part of the Tobacco Industry and Marketing Board (TIMB)’s drive to improve transparency and security in the sector. The initiative links each farmer’s unique grower number to their fingerprints, GPS coordinates, and demographic information, ensuring that only genuine growers participate in the market and helping protect farmers from exploitation.

    TIMB public affairs officer Chelesani Moyo Tsarwe said the biometric system will help eliminate fraud, curb side marketing, and enhance efficiency across the industry. “TIMB has rolled out a biometric grower management system to address the longstanding challenges within Zimbabwe’s tobacco sector,” she said. “The new system introduces biometric data capture, linking each farmer’s unique grower number to their fingerprints, GPS co-ordinates of their household and farm, and demographic data.”

  • Northern Ireland Busts ‘One of the Largest’ Illegal Tobacco Factories

    Northern Ireland Busts ‘One of the Largest’ Illegal Tobacco Factories

    Authorities in Northern Ireland dismantled what is believed to be one of the country’s largest illegal tobacco factories, following an October 5 raid by HM Revenue and Customs (HMRC) with support from the police. The operation uncovered a “state-of-the-art factory” equipped with expensive machinery, professional extraction equipment, and soundproofing insulation. Officers seized nine tons of tobacco and 1.3 million cigarettes, with an estimated value of over £3 million in unpaid duty. Seven men were arrested on suspicion of fraudulent evasion of duty, and investigations are ongoing.

    Dermot Clarke, operational lead in HMRC’s Fraud Investigation Service, described the site as “one of the most sophisticated tobacco factories we have ever uncovered in Northern Ireland,” warning that illicit trade harms public services, undermines legitimate businesses, and funds other criminal activity.

  • Australia’s Tobacco Policies Spark Harm and Chaos, Industry Expert Says

    Australia’s Tobacco Policies Spark Harm and Chaos, Industry Expert Says

    In a candid keynote at the Global Tobacco and Nicotine Forum (GTNF), Theo Foukkare, CEO of the Australian Association of Convenience Stores, delivered a scathing assessment of Australia’s tobacco and nicotine policies, saying the country is saddled with “harm and chaos.” Speaking under the theme “The Australian Experience: From Global Leader to Global Failure,” Foukkare outlined how once-successful public health strategies had collapsed under the weight of excessive taxation, poor enforcement, and the rise of organized crime.

    “Australia has become the model of what not to do. By any measure, it’s an absolute failure,” he said. “And believe it or not, our government still claims to have world-leading standards. We’re dealing with an absolute tsunami of illegal nicotine products entering the country. I call it ‘Tobacco Wars.’ It’s actually playing out in real life every day. The illegal nicotine market is now bigger than the next five organized crime categories combined.

    “Through bad policy, we’re actually creating harm,” he said, noting that smoking rates have remained virtually unchanged in the past decade despite mounting taxes and restrictions.

    “We had the most aggressive excise policy any government in the world had undertaken,” Foukkare said, with a legal pack of cigarettes now costing between $45 and $50. “They killed the golden goose, because the consumers said, “Enough is enough. Why would I pay this when there are cheaper options?”

    According to Foukkare, Australia’s extreme excise policies pushed consumers to the black market, eroding legal sales and fueling criminal activity. Organized crime groups, he added, have even begun taking over farms to grow illicit tobacco, while state governments scramble to form task forces.

    “There’s so much threat and intimidation,” he said. “Some store owners are paying $5,000 a month in protection money. Pay or they’ll burn your shop down. One store owner got a handwritten note saying he needed to meet with the [crime] boss. He took the note to the police, the next day, a car drove through the front of the store, and now it’s closed.”

    Foukkare criticized the government for ignoring early warnings about policy failures and dismissing data because it was industry-funded. Now, with estimates suggesting up to 60% of tobacco consumption is illicit, officials are finally acknowledging the scale of the problem. Foukkare also condemned the government’s anti-vaping stance, arguing that public messaging has convinced most Australians that vaping is more dangerous than smoking.

    Despite the creation of new penalties—million-dollar fines, landlord accountability clauses, and police powers to shut down stores—Foukkare said the measures have done little to fix the underlying issue. “We’ve spent a billion dollars and haven’t done anything to reduce smoking or keep people safe,” he said.

  • Indonesia Working Against Illegal Cigarettes

    Indonesia Working Against Illegal Cigarettes

    The Indonesian government is preparing a new regulation to curb the spread of illegal cigarettes, particularly those sold without excise bands, Deputy Minister of Industry Faisol Riza announced today (September 29). The plan will be accompanied by an expansion of Tobacco Products Industry Zones (KIHT) to more regions, an initiative that aims to attract illegal cigarette producers into these zones, encouraging them to operate legally under the tax-paying system.

    Data from the Ministry of Industry shows illegal cigarettes rose from 3% of total cigarette volume in 2019 to 6.9 percent in 2023, with machine-rolled clove cigarettes (SKM) making up the bulk of untaxed products. Riza warned that the illegal trade is hurting the domestic tobacco industry, causing idle machinery, reduced production, layoffs, and a negative impact on workers’ welfare.

    Indonesian smokers’ sensitivity to price has fueled demand for cheaper, untaxed cigarettes, the minister said. “A conducive business climate can only be realized if all parties, including the public, work together to eradicate the circulation of illegal cigarettes,” Riza said. The government emphasized that tackling illegal trade is essential to protecting legal producers and sustaining jobs within the sector.

  • Indonesia Weighs Tobacco Tax Hike Amid Worker, Smuggling Concerns

    Indonesia Weighs Tobacco Tax Hike Amid Worker, Smuggling Concerns

    Earlier this week, Indonesia’s Finance Minister Purbaya Yudhi Sadewa said that any increase in tobacco excise must be paired with safeguards for workers, warning that steep hikes could push the sector into decline without social protection programs. “You can’t kill the industry unless there’s a program to absorb the displaced workforce,” he told reporters, noting the risk of mass layoffs if cigarette excise rates rise too quickly.

    While higher taxes are designed to cut smoking rates and boost state revenues, Purbaya stressed the need for transition planning. He said he would review the condition of East Java’s cigarette industry and study the growing illegal market, which he warned is eroding legitimate businesses. The finance ministry is also investigating counterfeit excise stamps, which Purbaya believes could be costing the state significant revenue.

    Deputy Finance Minister Anggito Abimanyu confirmed that the 2026 excise tariff remains under review. Lawmakers recently agreed to raise the government’s 2025 customs and excise revenue target to Rp336 trillion ($19.7 billion), up from Rp334.3 trillion. Final details of next year’s tobacco tariff will be determined after an evaluation of this year’s performance.

  • Report: Latvia Lost €67M to Illicit Cigarette Trade

    Report: Latvia Lost €67M to Illicit Cigarette Trade

    Latvia lost an estimated €67 million to the illicit cigarette trade in 2024, a 31% increase over the previous year, as reported by KPMG at the National Forum on Smuggling. The study showed that contraband now accounts for 18% of total cigarette consumption in the country, with 340 million units consumed. Belarus remains the main source of smuggled cigarettes according to the report, supplying half of the illicit market, while counterfeit products surged 40% to 140 million units.

    Philip Morris Latvia public affairs head Guntars Grīnvalds warned that simplistic excise tax hikes can exacerbate smuggling rather than increase revenue. He advocated for a differentiated taxation approach: higher duties on traditional cigarettes, but lower rates for less harmful alternatives to encourage switching among adult smokers. The findings underscore the need for balanced excise and regulatory policies, as well as stronger measures against counterfeiting and illegal production, to effectively combat the growing illicit market.

  • Indonesia Looking to Crack Down on Illegal Cigarette Trade

    Indonesia Looking to Crack Down on Illegal Cigarette Trade

    Indonesia’s Finance Minister Purbaya Yudhi Sadewa pledged a crackdown on the country’s illegal cigarette trade, warning that anyone involved—including officials inside Customs or the Finance Ministry—will face consequences. Speaking at a budget briefing in Jakarta today (September 22), he vowed to conduct random checks on distribution channels and ordered e-commerce platforms to block illicit product listings, adding: “Spread the word: wherever illegal cigarettes are being sold, I will come.”

    The announcement comes as Indonesia enforces new 2025 tobacco excise rules. While excise tax rates remain unchanged, the government raised minimum retail prices across categories to deter smuggling and under-the-counter sales. Excise duties range from Rp 1,231 ($0.08) per stick for premium machine-made kretek to Rp 223 ($0.013) per stick for lower-tier hand-rolled kretek, with e-cigarettes taxed up to Rp 6,776 ($4.07) per milliliter. Despite these measures, around 22 billion sticks of illicit cigarettes were sold in 2023, costing the state Rp 15 trillion ($940 million) in lost revenue.

  • Crash Spills Smuggled Cigarettes Across Polish Highway

    Crash Spills Smuggled Cigarettes Across Polish Highway

    Polish police responding to a highway traffic accident found thousands of cigarettes strewn across S61, a key route linking Poland and Lithuania. Investigators found more than 1 million cigarettes in a van that had just crossed the border and stopped in the emergency lane before getting hit and spilling its cargo. The cigarettes were seized for not having Polish tax stamps, and the 36-year-old Lithuanian driver was arrested.

    According to preliminary estimates, the smuggling attempt could have deprived the Polish state budget of over 1.5 million złoty ( $416,000) in unpaid excise duty.