Illegal Cigarette Traffic Increasing in Hungary

  • 3 Jul 2023 9:23 AM
  • Budapest Business Journal
Illegal Cigarette Traffic Increasing in Hungary
The illegal cigarette market in the European Union continued to grow last year, with France leading the consumption list of counterfeit products. However, illicit cigarette traffic also increased in Hungary, according to KPMG's annual study, writes

Despite declining cigarette consumption in Hungary, the illegal market grew by three percentage points, which meant roughly 500 million cigarettes were consumed in 2022, which is 7.2% of the total consumption.

Despite the decline experienced in recent years, the share of the illegal market at home has reached the level of 2019 again, mainly due to products manufactured explicitly for contraband and, to a lesser extent, counterfeit tobacco products, according to KPMG.

Illegal tobacco products with a designation of origin arrive in Hungary mainly from Ukraine, it wrote.

According to KPMG's calculations, the Hungarian budget lost about HUF 31 billion in excise tax revenue last year due to tobacco products from illegal sources.

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Budapest Business Journal

Hungary's largest and oldest source of business and financial news in English. Since 1992 it has presented essential information on Hungarian business life, including international analyses about the country. These days the BBJ newspaper is published every other week, while it releases daily business news online including premium paid content.