Organised crime driving illicit cigarette factory boom ‘in almost every EU state’
The European Court of Auditors reports a significant rise in illicit cigarette manufacturing within EU borders as organized crime gangs shift production closer to consumers. This trend has led to an estimated €13 billion annual loss in tax revenue for the bloc.
Why it matters
The shift from smuggling to domestic illicit manufacturing poses a major challenge to EU law enforcement and fiscal stability.
Gangs are increasingly moving production inside the EU ‘to shorten supply chains and get closer to consumers’. Gangs are increasingly moving production inside the EU ‘to shorten supply chains and get closer to consumers’. European Union Organised crime driving illicit cigarette factory boom ‘in almost every EU state’ Bloc losing €13bn in revenue with one in 10 cigarettes illegal, watchdog reports
Prefer the Guardian on Google The illegal trade in tobacco is booming in the EU, according to a report by the bloc’s financial watchdog, with almost one in 10 cigarettes produced illicitly or smuggled, causing an estimated €13bn loss in tax revenue each year.
The European Court of Auditors (ECA) said in a report on Tuesday that the trade had “changed significantly” in recent years as smuggling, while still “a problem”, was overtaken by illicit manufacturing, which has increased dramatically in the bloc.
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