A recent study commissioned by tobacco company Philip Morris has revealed that one in 10 cigarettes smoked in Belgium is illegal. These illegal cigarettes are either smuggled from other

countries or counterfeit. The consumption of such cigarettes in Belgium has doubled within a year, increasing from 4.6% in 2021 to 9.8% in the previous year.

The allure of cheaper alternatives is believed to be driving this trend, especially amidst economic uncertainty and significant hikes in excise duties. Smuggled or counterfeit cigarette packs are often priced at half the cost of legal cigarettes, prompting Belgian smokers to seek more affordable options. Consequently, the government is estimated to lose around 250 million euros in excise duties and VAT.

The study also highlights a notable influx of smuggled cigarettes from Bulgaria, accounting for over 20% of the illicit market in 2022. Other countries implicated in cigarette smuggling to Belgium include Luxembourg, Turkey, and Poland. Counterfeiting has experienced a sharp rise as well, with counterfeit cigarette consumption surging from 70 million in 2021 to 270 million in 2022.

Belgium has increasingly become a hub for counterfeit cigarette production, primarily targeting France and the UK. Since the start of 2023, Belgian authorities have uncovered four illegal cigarette factories, one illegal cutting facility, and nine warehouses associated with illicit tobacco trade. In a recent operation conducted in West Flanders, the Customs Investigation Service seized 30 million counterfeit cigarettes.

According to a study conducted by KPMG on behalf of Philip Morris, counterfeit cigarette consumption is growing rapidly in Belgium, Ireland, and Croatia. However, the study also notes an overall decline in cigarette consumption across the European Union, with a 0.3% decrease in 2022, continuing the long-term downward trend. Photo by Santeri Viinamäki, Wikimedia commons.