Lost Tobacco Tax in Romania in 2011

in Business Risk

In June of 2011, cigarette smuggling in Romania was reported to be 15,7 percent of all cigarettes sold. The historic high in illegal cigarettes in the country was in January 2010, when an estimated 36.2 percent of the market was smuggled cigarettes.

For every percentage point that cigarette smuggling decreases, up to $43 Million (30 Million Euro) in tax revenue is generated for the country.

In 2010, the Government of Romania lost over $1 Billion in tax revenue from smuggling.

Source: Ovidiu Posirca, “Cigarette black market reaches 16 percent in H1,” Business Review, August 17, 2011.

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