site.btaBulgaria Has Relatively Low Market Share of Contraband Cigarettes, But It Is Still a Problem

Sofia, April 23 (BTA) - The market share of contraband cigarettes in Bulgaria was 6.6 per cent in the fourth quarter of 2017 compared with 6 per cent in the third quarter of 2017. It decreased by 1.2 percentage points compared with the fourth quarter of 2016, activists of the Initiative Against Illegal Trade told a conference on Monday.

For the purposes of their study, the activists analyzed 5,800 empty cigarette boxes found on the street and in waste containers in 20 large cities and towns across Bulgaria between November 1 and 23, 2017.

The 6.6 per cent market share of illegal cigarettes in the country compares well to the ratios in 20 other EU member states which were also surveyed in the fourth quarter of 2017. The situation in the United Kingdom and Ireland has been worst for some time now. The levels in the Baltic states and Romania are high too.

One of the main conclusions of the study is that there is still room for improvement regarding excise duty compliance. The analysts believe that the Bulgarian government's fight against contraband cigarettes should be sustained over a longer period of time and should be expanded to include loose tobacco as well. They advised against excessive market regulation.

Tobacco products are sold in 18,000 retail outlets in Bulgaria employing a total of 80,000 people, according to data provided by tobacco traders. In countries where retailers are required to keep such products out of sight of customers, many stores have gone out of business, the professionals warned.

Prime Minister Boyko Borissov said that despite the negligible overall increase of just 0.6 percentage points in the market share of illegal cigarettes, a meeting will be held with the competent government agencies on Wednesday to discuss why cigarette smuggling is growing in some parts of the country, including areas along major highways and near the southern border. He said an analysis of the situation should be carried out within a month from now. "Zero-point-six percentage points is too much for us," Borissov said, calling for measures to reverse the trend in the next quarter-year. "We are relentless and uncompromising in our fight against smuggling and corruption," the Prime Minister remarked.

Discussing how Bulgaria compares to other EU countries, particularly the United Kingdom, where 30 out of every 100 boxes of cigarettes are illegal, Borissov said he will raise the question before the EU Council.

Prosecutor General Sotir Tsatsarov argued: "If cigarettes are locked out of sight, why should we leave alcohol in plain view on the shelves? If something is done, it must be done in equal measure for all." Tsatsarov noted that contraband cigarettes have always been a problem in border areas, but the main issue is the virtual absence of loose tobacco from the legal market. "The prosecution service and the Interior Ministry should pay more attention to that," he urged.