Foreign and illegal cigarette sales surge as legal market shrinks in Belgium
Legal cigarette sales in Belgium continued to fall in 2024, while the volume of counterfeit and smuggled products increased significantly. That is according to the nineteenth annual report by consultancy firm KPMG, commissioned by tobacco company Philip Morris International.
While domestic sales keep declining, 1.06 billion cigarettes in Belgium were legally purchased abroad last year, an increase of 22 percent. The volume of counterfeit and smuggled cigarettes in the country also grew, by 13 percent, to 1.30 billion.
In total, 2.36 billion cigarettes consumed in Belgium last year came from non-domestic sources, a 17 percent increase compared to the previous year. This means that nearly one in three cigarettes smoked in the country were not purchased through Belgian sales channels.
KPMG noted a sharp rise in cigarettes coming from Eastern and Southern European countries. Imports from Bulgaria have tripled since 2020, reaching 770 million cigarettes last year. Cigarettes from Luxembourg rose from 260 million in 2020 to 740 million in 2024. Other major sources include Turkey, duty-free sales and counterfeit products. Together, these five sources accounted for 80 percent of the total non-domestic supply.
Counterproductive tobacco policy
According to consultancy firm KPMG, strict regulations and steep tax increases on legal tobacco are pushing consumers toward the black market. This shift to illegal or foreign products is estimated to have cost the Belgian government around 544 million euros in lost tax revenue last year.
But the impact goes beyond just financial losses. KPMG argues that the current tobacco policy is proving counterproductive. "Not only does it undermine the fight against smoking, but it also hinders the path to a smoke-free future," the firm states.
© BELGA PHOTO NICOLAS MAETERLINCK
Related news
