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Home News Latest Contraband cigarette market declined
Contraband cigarette market declined PDF Print E-mail
Written by CodruBot   
Sunday, 25 April 2010 13:14

Cigarette smuggling has declined to 33.9\% of the market in March, 2.3 percentage points less than the beginning, according to a study commissioned by British American Tobacco and Japan Tobacco International and conducted based on the responses of 2,500 people across the country.

In the first two months, smuggled products have reached 36.2\% of the market, making it the most important player. The decrease is mostly due to initiatives implemented by the authorities to stop smuggling, a significant proposal with a Ministry of Interior and Ministry of Public Finance Order no. 202/2010 prohibiting the sale of cigarettes in duty-free shopping sites, according to a release giving the results of the study.

"The fact that contraband cigarette market declined a positive signal. The latest measures taken by the authorities was a blow to the illegal market, and in our estimates of the two percentages can be converted into an amount equivalent to approximately 20 million euros, which come from the state budget. However, contraband goods still covers a very large market share both in profit and volume, "said Adrian Popa, head of Corporate & Regulatory Affairs, British American Tobacco South East Europe.

According to estimates of the two producers, the state budget could record losses of 1 billion euros due to smuggling of cigarettes only in 2010.

The survey by research company Novel Research shows that the phenomenon of smuggling of cigarettes has a specific regional rather than national one and has the largest scale in the north-east of the country. Moreover, it is the only region that recorded a marked increase in the illicit trade in the period under review, from 52.8\% to 59.5\%, mainly due to illegal cigarettes from Moldova.

Moreover, most smuggling activities decrease, 5.3\% was recorded in the south-east of the country. In the West, sales of contraband cigarettes purchased in duty-free sites had an encouraging decrease by 6.4\%.

Regarding the sale of contraband cigarettes, salesmen are the biggest source of illegal products purchase - 43\% of the market, followed by small stores and neighborhood markets.

Some areas of origin of smuggled products, Moldova is the leader, the volume of cigarettes in this country to climb in March to 6.1\%, followed by duty free shops and sites of Ukraine.

Percentage of contraband cigarettes from duty free sites decreased from 27.4\% to 25\%, a direct consequence of the Ministry of Finance order prohibiting the sale of cigarettes and liquor in duty-free shops and stocks of cigarettes compulsory liquidation and distilled beverages by vendors within 45 days after the entry into force of its provisions (February 9)


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Last Updated on Sunday, 25 April 2010 16:08
 


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