Trend of Illegal Smuggled Tobacco Market Growth in Hungary
According to Daily Hungary, data released by the newspaper shows that Hungary consumed 500 million illegal cigarettes in 2022, resulting in the country losing 30 billion forints (US$87.9 million) in excise tax revenue. Despite overall tobacco consumption
According to reports from Today Hungary, the data provided by the newspaper shows that Hungary consumed 500 million illegal cigarettes in 2022, resulting in a loss of 30 billion forints (approximately $87.9 million) in consumption tax revenue.
Despite a decline in overall tobacco consumption in Hungary, the illegal cigarette market grew by 3 percentage points in 2022. KPMG stated that the share has returned to 2019 levels, primarily due to products specifically produced for smuggling and counterfeit tobacco, most of which come from Ukraine.
Research shows that criminal organizations are earning increasing profits by distributing illegal products in countries with high prices and taxes. The pandemic and the war between Russia and Ukraine are also believed to be contributing factors to the increase in illegal trade.
