EU – Baltic States, Latvia, Legislation, Markets and Companies, Transport
International Internet Magazine. Baltic States news & analytics
Thursday, 25.04.2024, 15:34
Latvia had one of the steepest drop of illegal cigarettes market in EU in 2016
The data suggest that it is one of the steepest drops among all European
country covered by the survey. For example, illegal market share in Estonia
declined by 12%, and in Lithuania – by 11%.
At the same time, Latvia was the only of the Baltic states demonstrating a
rise of the legal cigarettes market in 2016.
"Despite the constantly growing prices, smokers prefers legal
cigarettes. It definitely proves the successful work of Latvia’s law
enforcement institutions, combating the illegal market. According to KMPG researchers,
the illegal cigarettes market in Latvia in 2016 was 550 million, and more than
141 million cigarettes have been confiscated, which is a very good
achievement," said State Revenue Service representative Baiba Smite-Roke.
She said that law enforcement institutions continue active work to prevent
circulation of illegal products in the Latvian market.
As reported, according to KMPG survey, Latvia still has the highest share
of contraband and counterfeit cigarettes among EU member states, Switzerland
and Norway, as illegal cigarettes make up 22.6% of total consumption in Latvia.
The large proportion of illegal tobacco means that Latvia loses around EUR
69 million a year in unpaid taxes on cigarettes.
In 2016, the share of contraband cigarettes in Latvia contracted by 4.1%age
points from 2015 and by 8.1%age points from 2012. In Estonia and Lithuania, the
share of illegal cigarettes was 13.3% and 17% respectively in 2016.