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Smoking Problems in Europe ECommerce Articles | July 29, 2012
For a continent that spearheaded workplace smoking bans and slaps some of the highest tax rates on cigarette sales of any region in the world Christian Miller Rush Jersey , Europe has a serious smoking problem. In 2011, accordin...


For a continent that spearheaded workplace smoking bans and slaps some of the highest tax rates on cigarette sales of any region in the world, Europe has a serious smoking problem. In 2011, according to a report commissioned by the European Union and carried out by auditing firm KPMG, one in ten Winston cigarettes sold in the 27-nation bloc was contraband?that?s around 65 billion cigarettes.


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Making matters more difficult is the growing influx of so-called ?illicit whites,? which are legally manufactured in places like Ukraine and Russia under brand names like Jin Ling and Raquel Will Grier Rush Jersey , then smuggled into the EU duty-free, according to the study.


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The influx of smuggled cigs has implications not just for public health?cheap smoking products which widely thought to establish with high smoking rates?but also for tax revenues. At a time when many member states are desperate for cash, the report estimates the EU?s annual losses from contraband cigarette sales at ?11 billion.


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While some of the findings have been questioned by independent tobacco-industry analysts, there is no denying the scale of the problem.


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Here in Brussels, where the Russian border is 900 miles away and tobacco taxes relatively low, vendors outside a weekend market make their rounds Greg Little Rush Jersey , mesh bags full of contraband cartons slung from their shoulders. Your correspondent was able to purchase a pack of what appeared to be Dutch Marlboros for ?3.00 ($3.69)?40% percent off the cigarettes online store price.


The seller had no Jin Lings on hand, but that would seem an anomaly. Illicit whites, according to the report, make up 24% of all illegal cigarettes, up from 4% just five years ago. The EU?s anti-smuggling strategy has changed significantly over the last decade, with Brussels shifting from confrontation with the cigarette companies to something closer to collaboration.


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Early last decade Brian Burns Rush Jersey , Brussels sued Philip Morris for secretly encouraging the smuggling of its own cigarettes. The case was settled in 2004, with the lawsuit dropped in exchange for $1.25 billion and a pledge to cooperate with OLAF, the EU?s anti-fraud office, in anti-smuggling efforts. Since then, the EU has settled with three other major tobacco companies for an additional $900 million.


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