site.btaLocal Media: Bulgarian and Turkish Cigarettes Cut into Belgium and Netherlands Tax Revenue

Local Media: Bulgarian and Turkish Cigarettes Cut into Belgium and Netherlands Tax Revenue
Local Media: Bulgarian and Turkish Cigarettes Cut into Belgium and Netherlands Tax Revenue
Illustrative photo of cigarettes (Interior Ministry Photo)

The import of cigarettes from Bulgaria and Turkiye is lowering excise revenue in Belgium's federal budget, local media reported on Monday. Annual budget losses are estimated at nearly EUR 500 million.

Reports show that 25.6% of cigarettes consumed in Belgium come from foreign countries, mostly Bulgaria. A pack of cigarettes costs around EUR 3.38 in Bulgaria, EUR 5.20 in Luxembourg, EUR 2 in Turkiye, EUR 3.49 in Albania, and EUR 5.02 in Poland.

In recent years, cigarette prices in Belgium have gone up from EUR 6.80 per pack in 2020 to EUR 11.50, a 60% increase in four years. Belgium expected EUR 3.25 billion in revenue from cigarette sales this year, but projections now suggest EUR 2.8 billion, a shortfall of EUR 450 million.

Changing the budget is a sensitive issue, local media outlets say, explaining that the government aims to increase revenue and reduce smoking rates. Statistics show that neither goal has been achieved - the percentage of smokers remains steady at around 24% of the population, and a budget revenue shortfall is expected.

A similar trend is noted in the Netherlands, whose market is also impacted by contraband cigarettes from Bulgaria and Turkiye. Media report that such cigarettes are often available online for home delivery, while tobacconists see steadily falling sales due to low profits and reduced customer interest.

/RY/

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By 12:22 on 08.12.2024 Today`s news

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