Novel Research: Illegal cigarettes trade in Romania soars to 16.9pct in May

The cigarettes smuggling increased in May 2016 to a market share of 16. percent, as compared to 14.6pct in March, show data released on Tuesday by Novel Research.

The North-Est region ranks first in cigarettes smuggling, with a black market share that beats the past seven-year record, exceeding 50 per cent.

Following are the South-West and West regions, with important shares (26pct and 25pct, respectively). From the origin point of view, the weight of the "cheap whites" is increasing (+3.8pct against March) and continues to hold the market's highest share (57.4pct) of the total black market. On the other hand, the products from Moldova are down (minus 4.5 percentage points from March, until 14.7pct), while those from Ukraine and Serbia maintain a constant level (20.4pct, respectively 3.4pct).

Generally, the cigarettes black market has had an oscillating evolution in the first five months of 2016: 16.9pct in May, up from 14.6pct compared to March and slightly down against January (17.8pct).

The 16.9pct figure is still above the 16pct average of 2015, and higher than the past five years average of approximately 15pct.

The tobacco industry is second largest contributor to Romania's public budget, second only to the oil sector. In 2015, the tobacco companies have yielded approximately three billion euros in excises, VAT, taxes and other contributions, which is 2pct of GDP and 12.5pct of the total budget revenues. The big tobacco has cooperation agreements with the European Commission to fight illegal cigarettes and wants some of Romania's allotment spent on prizes for outstanding results in anti-smuggling operations.

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