Illegal cigarette trade. There is the latest report from the audit firm

The KPMG report reveals the extent of the illicit tobacco trade. In Poland, the shadow economy is getting smaller every year.

Ukraine has become the second largest market in Europe in terms of the level of illicit cigarette trade, after France. Such conclusions come from the report of the KPMG audit firm. Poland can boast of an effective fight against the illicit trade in cigarettes. However, there is also bad news: in our country, cigarette consumption is increasing year after year.

According to the document, the level of illicit cigarette trade in Ukraine in 2022 was estimated at 19.9 percent and budget losses amounted to 636 million euros. The black market for cigarettes in Ukraine started to grow in 2018. And as early as 2022, every fifth pack sold in this country was from an illegal source.

In turn, the state budget in Poland loses 0.23 billion euros every year to illegal cigarette trade. The French, Irish and Greeks consume the most illegal cigarettes.

Black market for cigarettes

KPMG also annually examines the level of consumption of illegal cigarettes in the EU. In 2022, 35.8 billion illicit cigarettes were consumed, depriving governments of about €11.3 billion in tax revenue – an increase of 8.5% on the previous year. more than in 2021

The report noted that the consumption level of counterfeit cigarettes has reached the highest level in the history of the study. Most counterfeits – 61.5 percent. – consumed in France.

Kantar Ukraine previously estimated the share of the illicit tobacco market in Ukraine at 20.2 percent. in February 2023, in 2021 it was 16.9 percent and in 2020 – 6.9 percent. The increase is due to the increase in the share of counterfeit goods to 7.9 percent. and products marked as Duty Free – up to 10.8 percent. According to the company’s calculations, tax losses from the Ukrainian budget due to the illicit tobacco market in 2023 are estimated at UAH 22 billion.

The Chancellery of the President of Ukraine has declared its willingness to intensify the struggle in the market for excise goods, especially tobacco products.

Source: Do Rzeczy