From: Reuters
* Roughly one in 10 EU cigarettes are illegal
* Tobacco sales are declining
* But illegal cigarette sales continue to grow
By Ethan Bilby
BRUSSELS, April 17 (Reuters) – Black market sales of cigarettes in the European Union rose for the sixth year in a row, resulting in over 12 billion euros ($15.76 billion) in lost tax revenue, data from a report by consulting group KPMG showed on Wednesday.
Although EU cigarette consumption fell 5.7 percent in 2012, sales of so-called counterfeit cigarettes increased.
EU consumption of illegal cigarettes totalled almost 65 billion last year – more than a tenth of the total.
World No. 4 tobacco firm Imperial Tobacco has said it expects its first half profit to be bit by black market sales.
The annual report is sponsored by tobacco firm Philip Morris , as part of a 2004 legal settlement with European regulators.
It said that sales of illicit cigarettes, which include those manufactured for the sole purpose of being smuggled as well as fake packs passed off as prominent brands, grew the most in the UK, Greece, Italy and Estonia.
“In the midst of the economic crisis and budget deficits, illegal cigarettes continue to plague Europe, costing member states billion in lost taxes,” said Philip Morris’s Artyom Chernis.
Much of the illegal tobacco trade is run by organised crime, attracted by high potential profits for low potential penalties, the firm said.
The European Commission reached a series of financial settlements with tobacco manufacturers from 2004 to 2010, including Philip Morris, Imperial Tobacco, Japan Tobacco , and British American Tobacco, to fight contraband cigarettes.
The $1.25 billion agreement with Philip Morris in 2004 ended a legal dispute with EU regulators over the company’s role in smuggling cigarettes illegally into the bloc.
EU governments receive most of the money from the settlements to fund their fight against the illicit tobacco trade, while roughly 10 percent goes to the EU budget to fund similar efforts by the European Anti-fraud Office (OLAF).
OLAF said it had no comment on the report, but says on its website that trade in counterfeit cigarettes “harms the Europeaneconomy as they damage legitimate business and stifle innovation, putting many jobs at risk.”
More Reuters Results for:
Recommended Video
Key Rates
- Mortgage
- Home Equity
- Savings
- Auto
- Credit Cards
See today’s average mortgage rates across the country.
| Type | Today | 1 mo |
|---|---|---|
| 30-Year Fixed | 3.54% | 3.64% |
| 15-Year Fixed | 2.78% | 2.85% |
| 10-Year Fixed | 2.99% | 2.93% |
| 5/1-Year ARM | 2.66% | 2.70% |
| 30-Year Fixed Refi | 3.52% | 3.71% |
| 15-Year Fixed Refi | 2.76% | 2.93% |
| 5/1 ARM Refi | 2.60% | 2.87% |
| 30-Year Fixed Jumbo | 3.96% | 4.13% |
Rates may include points.
See today’s average home equity rates across the country.
| Type | Today | 1 mo |
|---|---|---|
| $30K HELOC | 4.98% | 4.77% |
| $50K HELOC | 4.60% | 4.40% |
| $75K HELOC | 4.53% | 4.34% |
| $100K HELOC | 4.26% | 4.13% |
| $30K Home Equity Loan | 6.24% | 6.25% |
| $50K Home Equity Loan | 6.01% | 6.02% |
| $75K Home Equity Loan | 5.97% | 5.98% |
| $100K Home Equity Loan | 5.84% | 5.83% |
See today’s average savings rates across the country.
| Type | Today | 1 mo |
|---|---|---|
| 1 year CD | 0.60% | 0.63% |
| 2 year CD | 0.82% | 0.81% |
| 3 year CD | 0.96% | 0.96% |
| 5 year CD | 1.29% | 1.33% |
| MMA | 0.48% | 0.50% |
| $10K MMA | 0.49% | 0.53% |
| MMA Jumbo | 0.61% | 0.63% |
| Savings | 0.52% | 0.54% |
See today’s average auto rates across the country.
| Type | Today | 1 mo |
|---|---|---|
| 60 Mo New Car | 2.68% | 2.56% |
| 60 Mo Used Car | 2.94% | 2.68% |
| 60 Mo Auto Refi | 4.37% | 4.02% |
| 48 Mo New Car | 2.59% | 2.64% |
| 48 Mo Used Car | 3.13% | 2.93% |
| 48 Mo Auto Refi | 4.31% | 3.98% |
| 36 Mo Used Car | 2.96% | 2.79% |
| 36 Mo Auto Refi | 3.77% | 3.91% |
See today’s average credit cards rates across the country.
Read
- Boston bomb probe focuses on bags and pressure cooker|
1:21pm EDT1 - Fox pulls “Family Guy” episode following Boston bombings
16 Apr 20132
- Boston Marathon bombs believed carried in dark, heavy bags|
16 Apr 20133
- Climate scientists struggle to explain warming slowdown
16 Apr 20134
- CORRECTED-South Korea to buy $1.6 bln worth of Boeing helicopters
9:07am EDT5
Sponsored Links
Europe’s illegal cigarette trade grows again-report
- inShare0
- Share this
- Prin
* Costing over 12 bln euros in lost tax revenue
* Roughly one in 10 EU cigarettes are illegal
* Tobacco sales are declining
* But illegal cigarette sales continue to grow
By Ethan Bilby
BRUSSELS, April 17 (Reuters) – Black market sales of cigarettes in the European Union rose for the sixth year in a row, resulting in over 12 billion euros ($15.76 billion) in lost tax revenue, data from a report by consulting group KPMG showed on Wednesday.
Although EU cigarette consumption fell 5.7 percent in 2012, sales of so-called counterfeit cigarettes increased.
EU consumption of illegal cigarettes totalled almost 65 billion last year – more than a tenth of the total.
World No. 4 tobacco firm Imperial Tobacco has said it expects its first half profit to be bit by black market sales.
The annual report is sponsored by tobacco firm Philip Morris , as part of a 2004 legal settlement with European regulators.
It said that sales of illicit cigarettes, which include those manufactured for the sole purpose of being smuggled as well as fake packs passed off as prominent brands, grew the most in the UK, Greece, Italy and Estonia.
“In the midst of the economic crisis and budget deficits, illegal cigarettes continue to plague Europe, costing member states billion in lost taxes,” said Philip Morris’s Artyom Chernis.
Much of the illegal tobacco trade is run by organised crime, attracted by high potential profits for low potential penalties, the firm said.
The European Commission reached a series of financial settlements with tobacco manufacturers from 2004 to 2010, including Philip Morris, Imperial Tobacco, Japan Tobacco , and British American Tobacco, to fight contraband cigarettes.
The $1.25 billion agreement with Philip Morris in 2004 ended a legal dispute with EU regulators over the company’s role in smuggling cigarettes illegally into the bloc.
EU governments receive most of the money from the settlements to fund their fight against the illicit tobacco trade, while roughly 10 percent goes to the EU budget to fund similar efforts by the European Anti-fraud Office (OLAF).
OLAF said it had no comment on the report, but says on its website that trade in counterfeit cigarettes “harms the European economy as they damage legitimate business and stifle innovation, putting many jobs at risk.”
Follow Reuters