Illegal cigarettes cost EU €13 billion in lost tax revenue

The European Union is losing about €13 billion in tax revenue each year because almost one in 10 cigarettes is produced illegally or smuggled into the bloc, according to the European Court of Auditors.

The EU financial watchdog said the illegal tobacco trade had changed significantly in recent years, with illegal production growing sharply across the bloc, Caliber.Az reports, citing foreign media.

Smuggling remains a problem, but organised crime groups are increasingly moving cigarette production inside the EU to shorten supply chains and get closer to consumers, the report said.

Petrī Sarvamaa of the European Court of Auditors said illegal production facilities were now being detected in almost every EU member state.

The watchdog said the growth of illegal cigarette manufacturing was contributing to significant losses in tax revenue for the EU.

By Aghakazim Guliyev