Cigarette Smuggling Costs the EU At Least 10 Billion Euro Annually

From: European Commission

Algirdas Ĺ emeta, Commissioner responsible for Taxation and Customs Union, Statistics, Audit and Anti-fraud

Speaking points/Committee on Budgetary Control (CONT) – European Parliament

Bruxelles, 7 octobre 2014

Dear Chair, Honourable Members, Ladies and Gentlemen,

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To start, let me briefly recall why I think that the clamp down on smuggling is so important.

The first reason is simple: Cigarette smuggling causes yearly losses to Member States and the EU of at least 10 billion euro in evaded customs duties and taxes. This is an intolerable loss of revenue, particularly in the current economic climate.

Secondly, cigarette smuggling is not a light misdemeanour. We are speaking of serious organised crime. We are speaking about gangs that operate smuggling on an industrial scale. We are speaking about dangerous criminals who finance other illegal activities through the revenue they make from cigarette smuggling.

Finally, smuggled tobacco respects no rules, and poses great risks to both consumers and businesses. It undermines our anti-smoking and public health campaigns, and violates strict rules we have on manufacturing, distribution and sale.

Fighting cigarette smuggling, therefore, is essential both to protect public budgets and to make Europe a safer place.

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