Baltic States Lead EU in Contraband Cigarette Market Share
According to a study by the business advisory company KPMG, illicit cigarettes hold a larger market share in the three Baltic states than in any other EU member.
In Estonia in 2012, 19.7 percent of all cigarettes consumed were contraband, while the corresponding figures for Latvia and Lithuania were 30.7 and 27.5 percent respectively, KPMG said in a press release today.
The EU average has risen six years in a row, from 2.4 percent in 2006 to 11.1 percent last year.
“Their market share has risen as supply increases and consumers are more open to contraband cigarettes,” said Maris Leemets, a spokeswoman for Philip Morris Eesti OÜ.
As the result of the illegal activity, Estonian taxmen missed out on 40 million euros in excise duties last year.
The study was conducted in cooperation with Philip Morris International, the European Commission and EU members states.