site.btaAuthorities Report Achievements in Curbing Cigarette Smuggling

Authorities Report Achievements in Curbing Cigarette Smuggling

Sofia, November 30 (BTA) - The share of illegal cigarettes in total cigarette consumption in Bulgaria was 13.4 per cent in the second quarter of 2015, the lowest level since surveys began eight years ago, the Customs Agency reported on Monday. The information was collected during a market survey on leading tobacco companies and was unveiled at a working meeting in the Interior Ministry.

Compared with the previous survey in the fourth quarter of 2014, the share of illegal cigarettes fell by 4.7 percentage points.

Suppressing smuggling in excisable goods is one of the main priorities of the government, Interior Minister Roumyana Buchvarova said during the meeting, which was attended by senior executives of the five leading tobacco companies.

Interior Ministry Chief Secretary Georgi Kostov said the joint efforts of the Interior Ministry, the Customs Agency and the National Revenue Agency have led to a considerable reduction of smuggling in excisable goods.

The Head of the Chief Directorate for Combating Organized Crime, Ivailo Spiridonov, noted the successful cooperation with international law enforcement services which has resulted in the disruption of five illegal cigarette factories in Europe.

Customs Agency Director Vanyo Tanov said the achievements should be credited mainly to the government, which has the political will to fight the distribution of contraband cigarettes.

Over the last quarter, cigarette excise revenues grew by a remarkable 17-19 per cent, which means between 220 million and 230 million leva in additional public revenues so far this year, with forecasts predicting that the additional amount will reach 250 million leva by the year's end, Tanov said. He said the Customs Agency is preparing technically and otherwise for a planned rise in excise duty on cigarettes in 2016, which will make the illegal tobacco trade more lucrative for criminal organizations. Negotiations are underway for the purchase of an x-ray system to scan trainloads, he said.

Despite the general decrease in cigarette smuggling and the visible fall in levels in particular towns, there is still room for improvement in other towns, where the levels of consumption of illegal cigarettes remain high: Svilengrad (49 per cent), Gabrovo (45.9 per cent), Blagoevgrad (31.8 per cent), Pazardjik (31.1 per cent), Montana (29.8 per cent), Plovdiv (29.6 per cent), Kyustendil (25.5 per cent) and Sliven (25 per cent).

The survey shows that most illegal cigarettes in Bulgaria are labelled for duty-free distribution and are offered by street vendors in outdoor marketplaces or delivered to offices or homes via a well-organized illegal network.