AUTÓNOMOS Y EMPRENDEDOR: HIGH TOBACCO TAXES FUEL SMUGGLING SURGE, THREATEN SELF-EMPLOYED RETAILERS

AUTÓNOMOS Y EMPRENDEDOR: HIGH TOBACCO TAXES FUEL SMUGGLING SURGE, THREATEN SELF-EMPLOYED RETAILERS

A new European study featured in Autónomos y Emprendedor reveals how steep tobacco taxes are driving a boom in cigarette smuggling across 28 countries, eroding public revenues and endangering self-employed tobacconists' livelihoods. EPICENTER analysis shows a statistically significant correlation: every €1 tax-driven price hike boosts the black-market share by 5–12 percentage points. Nations like France, the UK, Greece and Ireland have experienced sharp illicit trade rises after major tax increases, with legal sales plummeting while smoking rates hold steady—shifting consumers to contraband and empowering criminal networks.

Share this content

EPICENTER publications and contributions from our member think tanks are designed to promote the discussion of economic issues and the role of markets in solving economic and social problems. As with all EPICENTER publications, the views expressed here are those of the author and not EPICENTER or its member think tanks (which have no corporate view).

Subscribe

* indicates required

EPICENTER publications and contributions from our member think tanks are designed to promote the discussion of economic issues and the role of markets in solving economic and social problems. As with all EPICENTER publications, the views expressed here are those of the author and not EPICENTER or its member think tanks (which have no corporate view).

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.