Illegal tobacco trade costs EU billions

Nearly one in 10 cigarettes consumed in the European Union is illegally produced or traded, costing EU and national budgets an estimated €13 billion in lost revenue each year, according to a new report by the European Court of Auditors.

The report warns that illegal tobacco production and smuggling remain a serious problem for the EU, with consequences extending beyond public finances to public health and security.

Illegal production is rising

European auditors said illegal tobacco production within the EU is increasing, while criminal networks are using increasingly sophisticated methods to smuggle tobacco products.

The growth of new tobacco and nicotine products is also adding complexity to efforts to monitor and combat the illicit market.

Despite measures taken by the European Commission and EU member states, the auditors said the response remains insufficiently coordinated.

Fragmented approach leaves gaps

The European Court of Auditors identified significant gaps in cooperation between member states and criticized the lack of a coordinated approach at EU level.

Anti-illicit tobacco initiatives remain fragmented, with responsibilities divided among multiple stakeholders and no single body holding a clear overall coordinating role, according to the report.

The auditors said this fragmentation has resulted in initiatives that lack a common direction and can leave gaps in enforcement.

Auditors call for stronger EU role

The European Court of Auditors called on the European Commission to take a more active role in coordinating the fight against illegal tobacco trade.

The report said stronger cooperation and a more centralized approach would be needed to address a criminal market that increasingly operates across national borders.

With billions of euros in tax revenue at stake and illicit tobacco posing wider health and security risks, the auditors said the EU needs a more effective and coordinated response.

Source:efsyn.gr