More Smuggled Cigarettes Sold in Romania

The percentage of cigarettes on sale in Romania that have been smuggled into the country rose slightly to 15.8 per cent in March, up 0.1 percentage point compared to the previous month, market sources said.

Most smuggled cigarettes come from neighboring Moldova and Ukraine, according to a report from Novel Research polling company.

Experts attribute the recent increase both to the economic crisis and to insufficient measures taken to fight smugglers.

“The higher smuggling rate shows it is difficult to stop the chain reaction after the recent unpredictable fiscal and excise changes, which led to a cigarette price increase,” said Adrian Popa, from a tobacco company.

He added that many people rely on cheaper smuggled cigarettes, as they say they do not have enough money to pay for legitimate products.

The price difference between products sold legally, and products sold on the black market, is around 1 euro, according to media reports.

The historic high in smuggled cigarettes on sale was 36.2 per cent of total sales. This figure was registered in January 2010 following an increase in excise duties on tobacco.

Cigarette producers in Romania say only a single percentage point drop in cigarette smuggling would yield some 35 million euro in taxes to the state budget.

Romania remains a haven for bootleg cigarettes and custom officers seize millions of packets each year.

Criminal gangs and impoverished communities living near the borders with countries where prices are lower - Serbia, Moldova and Ukraine - have taken to smuggling as a means to earn a daily living.