A KPMG study reveals an increase in the consumption of illegal smuggled and counterfeit cigarettes in Croatia, resulting in a tax revenue loss of 57 million euros. The rise in illegal trade is linked to high taxes and excessive regulation, which benefit smugglers and unregulated products. Philip Morris International calls for more effective policies and regulations to combat illegal trade, including predictable taxation and enhanced public-private cooperation. The study also highlights similar trends in other European countries, with particular issues in France and the Netherlands, while some countries like Greece and Bulgaria have managed to reduce illegal consumption. Illegal cigarette trade poses a serious threat to public health, government revenues, and the economy.
Political Perspectives:
Left: Left-leaning outlets emphasize the socio-economic impact of illegal cigarette trade, highlighting how excessive taxation and regulation disproportionately affect lower-income smokers and fuel the black market. They often call for balanced policies that protect public health without criminalizing consumers and stress the need for social support and harm reduction strategies.
Center: Center-leaning sources focus on the economic and regulatory aspects, reporting the increase in illegal cigarette consumption as a consequence of high taxes and complex regulations. They highlight calls from industry players like Philip Morris for evidence-based, predictable tax policies and improved law enforcement cooperation to curb illegal trade, emphasizing the balance between public health goals and economic impacts.
Right: Right-leaning perspectives tend to stress the importance of law and order, focusing on the criminal aspects of cigarette smuggling and counterfeit products. They advocate for stronger enforcement measures and criticize government policies that inadvertently encourage illegal trade through high taxation. They may also emphasize protecting legal businesses and government revenues.
