Tobacco Smuggling Is to Blame: Greece Could Save Billions Under Different Circumstances

　　China Gold Network, March 9 — According to a new report, if tobacco smuggling were eliminated, Greece’s cash-strapped government could save €1 billion a year.

It’s all because of tobacco smuggling!

　　Research firm Euromonitor said Greece lost about €740 million in revenue last year due to the illegal tobacco trade, up from €565 million in 2013, and the figure is expected to reach €1 billion by 2019.

　　A survey conducted by AC Nielson last December showed that illegal cigarette trade accounted for 21% of all cigarette consumption in Greece last year, compared with 18% in 2013.

　　Euromonitor tobacco analyst Shane MacGuill said the increase was driven by consumption- and industry-led price hikes, as well as the growing smuggling of “illicit whites.” These are cigarettes manufactured specifically for smuggling, also known as white cigarettes, and there are no signs of the trend slowing down.

　　He also said, “Further increases in excise taxes, along with Greece’s continued use as a transit hub for illegal smuggling, mean that the illegal cigarette trade could reach or exceed 25% by 2019.”

　　Greece is aware of the economic cost of tobacco smuggling. It was included in the reform list submitted by Finance Minister Varoufakis to the eurozone last month.

　　However, it remains unclear how the Greek government will reduce the illegal cigarette trade.

　　Shane MacGuill said, “The Greek government and manufacturers must take steps to curb domestic demand for illegal cigarettes, through moderate tax increases and by educating consumers about the nature of the illegal cigarette trade.”

　　A public campaign last year organized by tobacco companies and government agencies under the slogan “Say No to Illegal Tobacco Products” made some initial progress. However, MacGuill warned that tackling tobacco smuggling requires more than slogans if the country is to fully recover the lost revenue.

　　Greece is expected to provide more details on its reform plans in the coming weeks, including efforts to combat fuel and tobacco smuggling.