A third of cigarettes in Belgium sourced from black market
The illicit cigarette trade in Belgium is reaching alarming levels, La Libre writes. Nearly a third of all cigarettes consumed are either smuggled or counterfeit, according to a new report by Cimabel, the Belgian-Luxembourg federation of cigarette manufacturers.
In the second quarter of 2024, 36.5 per cent of cigarettes evaded taxation, up from 20 per cent the previous year. While only 1 per cent were counterfeit, the vast majority were bought in countries with lower tobacco prices, such as Bulgaria.
Cimabel attributes this sharp increase to “excessive” tax hikes introduced by the previous federal government, which have driven more Belgians to seek cheaper alternatives on the black market.
Trafficking hub
Belgium has become a key hub for illegal tobacco trafficking, alongside its existing reputation as a hotspot for drug and arms smuggling. Organised crime networks are exploiting the high prices, importing large quantities of cheap cigarettes and selling them at significant profit margins. Authorities have been attempting to crack down on the illicit trade.
In late February, the largest illegal cigarette factory ever found in Belgium was dismantled in Lommel, in Limburg. Nearly 30 million cigarettes were seized, representing 14.4 million euros in unpaid taxes. Fifty people, mostly Ukrainian, Moldovan and Romanian nationals, were arrested.
While the Belgian government has implemented strict anti-smoking policies to curb tobacco use, the tobacco industry argues that rising taxes are fueling the black market rather than reducing consumption.
Cimabel warns that the state is losing revenue while criminal organisations reap increasing profits. The organisation calls for a review of excise policies to combat the illegal trade more effectively.
© BELGA PHOTO NICOLAS MAETERLINCK
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