The consumption of illegal cigarettes in Cyprus stands at 11%, according to the results of the new annual independent report by KPMG for 2023, conducted on behalf of Philip Morris International. According to the report, tax revenue losses remain high, reaching €18 million, despite the marginal decrease in the consumption rate of illegal cigarettes in Cyprus.  

A total of 100 million illegal cigarettes were consumed in 2023, with the increase mainly attributed to the influx of contraband cigarettes from areas where the Republic of Cyprus does not exercise control.  

The outflow of contraband cigarettes from Cyprus increased by 3% compared to 2022, with higher outflows to smaller markets. This increase was partly offset by a reduction in outflows to the United Kingdom, although it remains the primary destination for illegal cigarette outflows from Cyprus in 2023.  

“For Philip Morris International, eliminating the illegal tobacco trade has been a long-term priority. Cooperation between the public and private sectors is crucial for promoting efforts against this global problem,” said the General Manager of Philip Morris Cyprus, Grigoris Kamperis, emphasizing that Philip Morris International continues to support the relevant European regulations, such as the provisions of the EU directives for the tracking and tracing of tobacco products. 

Over 35 billion illegal cigarettes were consumed across the 27 EU member states in 2023, accounting for 8.3% of total consumption in the EU. Illegal cigarette consumption has been rising for the fifth consecutive year in Europe, reaching 52.2 billion cigarettes across the 38 countries included in the study. Nearly 1 in 10 cigarettes on the European continent is contraband.  

The consumption of counterfeit cigarettes remains one of the main sources of total illegal consumption in the region, with 12.7 billion (36%) cigarettes consumed, as criminal networks increasingly target markets with higher taxes and prices. Overall, governments in the EU lost approximately €11.6 billion in tax revenue in 2023, compared to €11.3 billion in 2022. France remains the largest market for illegal consumption across Europe, with 16.8 billion illegal cigarettes and an estimated tax revenue loss of €7.3 billion.  

“We are witnessing the evolution of organized crime groups in Europe, as they increasingly move their production facilities closer to Western European countries. We see this as a direct consequence of failed policy approaches that have not done enough to curb illegal trade and reduce smoking prevalence, putting consumers, governments, legitimate businesses, and society at risk,” said Christos Harpantidis, Senior Vice President of External Affairs at PMI. He added, “To bring an end to smoking altogether, traditional tobacco control policies need to be complemented by innovative approaches. Governments must recognize that adopting alternatives to cigarettes for adults who would otherwise continue smoking will reduce smoking-related harm much faster than existing measures alone.”  

The steady increase in the consumption of counterfeit cigarettes for the fourth consecutive year across Europe — driven primarily by the United Kingdom and Ukraine — is now combined with the rise of all other categories of illegal trade. Along with the continued recovery of cross-border legal quantities following the lifting of COVID travel restrictions in 2022, total non-domestic consumption in the 38 European countries of the study has also reached the highest level ever recorded (15.5%), corresponding to more than one cigarette in six.  

A detailed overview of the report’s findings and methodology is available here.  

For more information on PMI’s efforts to prevent illegal trade, visit the PMI.com website.