(by Stefano Giantin)
(ANSA) - BELGRADE - Almost 600,000 people in all countries of
former Yugoslavia, which have a combined population of around 21
million, regularly buy tobacco products on the black market,
with millions of euros of taxes evaded every year due to the
illegal business, shows a new report by the Zagreb Institute of
Economics, based on researches and interviews with 21,000
respondents in the whole region.
The study 'Illegal Trade of Tobacco Products: Smuggling as
Experienced along the Balkan Route' (BalkanSmugg) said that
around 581,000 people in the Balkans buy tobacco products on the
gray market, out of which 254,000 in Bosnia-Herzegovina, 138,000
in Serbia and 83,000 in Croatia. In average, 11% of the smokers
from the seven analyzed countries - Slovenia, Croatia, Bosnia,
Montenegro, Serbia, North Macedonia, Kosovo - buy tobacco
products on the gray market, in particular cigarettes and cut
tobacco. The percentage is higher in certain countries, with
almost 28% of smokers in Montenegro who buy tobacco products
from illegal channels, 20.3% in Bosnia, 7.6% in Croatia, 6.5% in
Serbia, 6.3% in Kosovo, 3.8% in North Macedonia, 3.3% in
Slovenia.
"For eight out of ten smokers buying on the gray market,
better price is the main reason for buying tobacco products
illegally," the report said. "Cigarettes made from illegally
bought cut tobacco are ten times cheaper than the same quantity
of industrially manufactured cigarettes sold in regular stores
in Croatia," the BalkanSmugg report reads, adding that the
survey proved that "smokers will buy on the gray market as long
as it is cheaper." "Almost half of the smokers in the analyzed
countries state that they have been buying on the gray market
since the cigarettes have become more expensive" in recent
years. Moroever, it is "relatively easy" in the region to
acquire "cigarettes and cut tobacco on the gray market."
However, about 80% of citizens in the region consider buying
stolen, counterfeit or unknown cigarettes brands without tax
stamps as unacceptable. The study revealed that that
"two-thirds" of interviewees them admitted they could be
motivated "to stop buying on the gray market, if their living
standard improved."
According to the report, income derived by illegal tobacco
smuggling is estimated at over 200 million euros annually, with
more than 306.7 million euros annually evaded due to tobacco
smuggling in the countries in the region. The direct losses
varies from country to country, with the highest negative impact
recorded in Bosnia-Herzegovina (total tobacco taxes uncollected
due to tobacco smuggling at 0.9% of GDP), Montenegro (0.6% of
GDP), Serbia, Croatia and Kosovo (0.2% of GDP).
The survey said that, on average, one out of three persons
living in the region is a smoker, with the highest percentage
recorded in Bosnia. The proportion of respondents who said they
smoke is 43% in Bosnia, 41% in Kosovo, 39% in North Macedonia,
38% in Montenegro, 37% in Serbia, 33% in Croatia and 25% in
Slovenia. The most common tobacco product used are industrially
manufactured cigarettes (88%). (ANSA).
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