KEFIM: Black Market for Tobacco Products at 25% in Greece

A new study by EPICENTER, published by the Center for Liberal Studies (KEFIM), reveals that 25% of the tobacco product market in Greece is a black market of smuggled and counterfeit products. This is the fourth highest percentage among the countries participating in the study.

The report highlights that this high percentage is not solely due to the price of tobacco products and their affordability relative to citizens' income. Other contributing factors include tax culture, weaknesses in state institutions, ineffective law enforcement, porous borders, and proximity to countries with lower prices.

The authors of the report note that increasing tobacco taxes in Europe exacerbates the black market. Specifically, for every additional euro in the price of tobacco due to increased taxation, the black market share increases by 5-12%, which does not lead to a corresponding increase in government revenue but to the strengthening of criminal organizations.