Cyprus loses €18 million in taxes due to illicit cigarette trade

Illicit cigarette consumption in Cyprus remains a pressing issue, accounting for 11 per cent of the total market, according to KPMG’s 2023 independent report for Philip Morris International.

While this marks a slight reduction in the rate, the impact on government revenue is still substantial, with contraband cigarettes costing the state an estimated €18 million in tax losses for the year.

The report stresses that 100 million illicit cigarettes were consumed in Cyprus last year...