An increase in the consumption of illegal cigarettes was recorded in Cyprus in 2024, while at the same time, the EU reached its highest level since 2015, according to the results of the annual independent report by KPMG, conducted once again on behalf of Philip Morris International.

Specifically, according to the findings of the report, in Cyprus in 2024:

• The percentage of illegal cigarettes is estimated at 14.3% of total cigarette consumption, an increase of 3.29 percentage points compared to 2023 (11.0%).

• A total of 130 million illegal cigarettes were consumed.

• Lost revenue for public finances is estimated at €22 million for 2024.

• At the European Union level, 38.9 billion illegal cigarettes were consumed, with losses in public revenue estimated at €14.9 billion (+€3.3 billion compared to 2023).

According to the KPMG report, the countries recording the worst performance in combating illegal trade include:

• France, which remains in the top position for illegal cigarette consumption for yet another year, representing 37.6% of the country's total cigarette consumption and showing the largest increase compared to all other countries versus 2023.

• The Netherlands, which for the first time recorded a significant increase in illegal cigarette consumption, reaching 17.9% nationally and entering the list of countries with high rates.

Christos Harpantidis, Senior Vice President of External Affairs at Philip Morris International, commenting on the report's findings, emphasized: “The illegal trade threatens the European economy, public health, safety, and social stability. Today, markets with very high cigarette taxes and prices, such as France and the Netherlands, are particularly affected by illegal cigarettes. The enormous socio-economic impact of the illegal cigarette trade negatively affects state revenues, job creation, and businesses—the 'engine' of the European economy. The availability of cheap, unregulated cigarettes on the black market also undermines efforts to reduce smoking and achieve a smoke-free world.”

Grigoris Kamberis, General Manager of Philip Morris Cyprus and Malta, noted: “The consumption of illegal cigarettes remains a significant issue in Cyprus, the EU, and Europe overall. Illegal cigarette flows from the occupied territories increased by 19% compared to 2023. Today, more than ever, it is clear that the illegal cigarette trade is not just an economic issue, but a matter of public health and safety. In view of the revision of the Tobacco and Nicotine Products Tax Directive, the country’s positions must take into account key elements of the national tax framework and provide incentives for companies to invest in better alternative products compared to cigarettes.”