Belgian State Treasury lost nearly a billion euros last year due to illegal cigarettes
The Belgian state lost an estimated 963 million euros in excise revenue last year due to the consumption of illegal cigarettes, according to a study by consultancy KPMG commissioned by Philip Morris International (PMI), published on Wednesday.
The report by the major global tobacco company shows that consumption of counterfeit and smuggled cigarettes rose by 60 per cent in 2025 to 2.09 billion units, representing just under a quarter of all cigarettes smoked in Belgium.
When combined with legally imported cigarettes purchased abroad, total consumption without Belgian excise duty reached 3.17 billion cigarettes, or 37.6 per cent of the market. PMI described this as a record level.
“The actual amount of lost excise duties is therefore much higher,” a PMI spokesperson said.
Almost one in four of the cigarettes consumed in Belgium originated in Bulgaria, which PMI says is largely linked to illegal imports. Cigarette purchases in Luxembourg, where excise duties are lower, accounted for 730 million units.
Overall, cigarette consumption in Belgium fell slightly by 1.5 per cent to 8.42 billion units.
Counterfeit branded cigarettes found during a raid by customs officers on an illegal smuggling site in Aartselaar, near Brussels. © PHOTO JOHN THYS / AFP
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