1.6 Billion Illegal Cigarettes Sold in Germany, Study Reveals

A KPMG report highlights the significant tax losses and growing domestic production linked to cigarette smuggling.

The illegal cigarette trade in Germany accounted for 2.1% of total consumption in 2023, with an estimated 1.6 billion cigarettes sold on the black market.
The German government lost approximately 368 million euros in tax revenue due to these illegal sales, according to KPMG's findings.
Illegal cigarette production is rising within Germany, with operations like a factory in Iserlohn being shut down by authorities in 2022.
Germany is increasingly becoming a production hub for illegal cigarettes, which are often smuggled to countries like France and the UK for higher profits.
The study indicates that the cigarette black market is significantly larger in countries like France and the UK, driven by higher cigarette taxes and prices.