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Reading: BiH loses almost 200 Million Euros annually due to illegal Tobacco and Cigarettes
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Sarajevo Times > Blog > BUSINESS > BiH loses almost 200 Million Euros annually due to illegal Tobacco and Cigarettes
BUSINESS

BiH loses almost 200 Million Euros annually due to illegal Tobacco and Cigarettes

Published: March 9, 2024
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Bosnia and Herzegovina loses about 200 million euros (392.2 million BAM) annually due to the illegal tobacco market, which mainly refers to the use of cut tobacco and cigarettes illegally imported from Kosovo, according to IPSOS research conducted among tobacco users.

According to the results of that research, published by Nezavisne novine, despite the large number of actions carried out by police agencies and prosecutors, about 35 percent of the tobacco market in our country is illegal.

“Illegal consumption of tobacco products today in Bosnia and Herzegovina reaches a high 35 percent. What is particularly worrying is that smugglers have found new distribution channels, and illegal cigarettes from Kosovo or without tax stamps are becoming more and more common on the BiH market,” said the economic analyst Faruk Hadzic.

IPSOS research showed that during the last year the total consumption of illegal cut tobacco amounted to 2,019 tons.

Because of this, BiH annually loses about 400 million marks in revenue, which is equivalent to half of the money needed for the construction of the longest, 11-kilometer-long tunnel on the highway corridor Vc through the Prenj mountain, which should connect Herzegovina with Bosnia.

The economic analyst warned that along with illegal cut tobacco, the appearance of cigarettes with a tax stamp from Kosovo or cigarettes without a tax stamp is becoming more frequent.

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