Ukraine’s budget loses about UAH 5 bn annually due to cigarette smuggling

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Open source

The shadow tobacco market is growing every year and has a strong impact on the Ukrainian economy, Novoye Vremya reports.

According to Kantar TNS, as of February 2020, illegal tobacco products accounted for about 6% of the tobacco market.

Director Corporate Affairs at JT International Ukraine Gintautas Dirgela, says that the growth in the number of illegal tobacco products negatively affects not only the cigarette market, but also the state budget itself. According to him, in 2019, the state budget lost about UAH 5 billion in revenues.

At the same time, he noted that counterfeit and contraband cigarettes are transported in conditions that can cause damage to goods.

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