Surge in Illicit Cigarette Manufacturing Costs EU Billions Annually
By Editor • September 8, 2026 • 1 min read
The European Union is grappling with a significant rise in illicit tobacco production, with nearly 10% of cigarettes now deemed illegal, according to a fresh report from the European Court of Auditors (ECA). This surge in organized crime is leading to an estimated annual loss of €13 billion in tax revenue for member states.
Shifting Trends in Tobacco Trade
The ECA's findings reveal a noteworthy shift in the dynamics of tobacco trafficking within the EU. While smuggling remains a concern, the report indicates that illicit manufacturing has surged to become the dominant issue. This evolution reflects a changing landscape in the European tobacco market, where illegal production is on the rise.
Widespread Impact Across the EU
The report highlights that the illegal cigarette trade is not confined to a specific region but is prevalent in almost every EU member state. The widespread nature of this issue underscores the challenges faced by authorities in combatting organized crime and maintaining public health standards.
Source: www.theguardian.com
