Poland and Belgium major hubs for illegal tobacco: 9 factories dismantled in Belgium
In 2021, 74 illegal cigarette factories have been dismantled in Europe, an increase of over 57% compared to 2018. Nine of them were located in Belgium, putting the country in a dubious second place.
Belgium proved to be a major hub for illegal tobacco production, according to customs. This involvement is most likely a consequence of its central location, which makes export easy. Belgian illegal tobacco mainly goes to the United Kingdom, although Greece and France are becoming increasingly important markets. Recently increased tobaco duties in France play a role in this evolution.
Poland had by far the most illegal cigarette production sites in Europe last year: 32. Belgium follows in second place with 9 sites. In the Netherlands, 8 factories were closed down. As for illegal bong production sites, Germany is in first place with 11, followed by Sweden (8) and Belgium (3).
The Belgian government is losing a lot of revenue to illegal tobacco production, which is why federal Finance minister Vincent Van Peteghem is making it a priority to tackle them. "The production of illegal tobacco is not only a major threat to our public health, but also undermines our tax system, which is based on solidarity", he said on Wednesday. "Every euro the illegal producers do not pay, honest taxpayers end up having to cough up."
"The production of illegal tobacco is not only a major threat to our public health, but also undermines our tax system"
The rising figures are the result of increased European cooperation on seizing illegal cigarettes and dismantling illegal factories. This happens through EMPACT, the European Multidisciplinary Platform Against Criminal Threats. Only Belgium, the Netherlands, Germany, the United Kingdom and Europol were initially involved in this initiative, but now 23 European Member States are cooperating. Belgium has been leading the EMPACT initiative to tackle illicit tobacco production since 2018.
According to Belgian customs administrator Kristian Vanderwaeren, illegal production sites are getting bigger and more professional, with the criminal gangs behind them becoming better organised. In addition, the factories are often mobile, which means they can be moved quickly. "One actually runs a multinational without paying taxes."
(BRV)
Picture shows a customs officer inspecting counterfeit cigarettes found during a raid on an illegal smuggling site in Aartselaar, near Brussels, on August 4, 2021 - © BELGA/AFP PHOTO JOHN THYS