The cigarette black market in Romania went down 13 percent in the first month of 2012, according to Novel. This decrease was recorded mainly due to the efforts of the authorities, legislative changes, as well as due to the close collaboration between the state and the tobacco industry.

“We should mention that, due to the efforts of the Moldovan authorities, the share of Moldovan stamped, smuggled cigarettes fell. Unfortunately, we are currently witnessing increasing cigarette smuggling from Serbia. For the black market to keep decreasing, the legislation should be further improved, and the schedule of increased excise duties, published in the Tax Code, respected,” said Gilda Lazar, Director Corporate Affairs & Communications, JTI Romania.

In January, 2010, cigarette smuggling reached a historic maximum of 36.2 percent of total sales, as a result of massive increases in duties on cigarettes.

The Romanian cigarette market is represented by the business of three international companies - British American Tobacco, Philip Morris, and JTI, which in 2011, contributed some EUR 2.75 billion to the general consolidated budget in excise and VAT.

Irina Popescu, irina.popescu@romania-insider.com