Lithuania: Contraband cigarettes account for 19% of market: KPMG

Lithuania remains an EU leader in terms of the market share of contraband cigarettes, according to KPMG’s market research, DELFI reports. The study found that altogether 2.63 billion cigarettes were consumed in Lithuania in 2022, which was 0.2 billion less than in 2021. Contraband cigarettes accounted for 0.59 billion of the total, which was 19.2% of the market. The market share of illicit cigarettes rose by 0.2 percentage points compared to 2021. Most of the illegal cigarettes (77%) come from neighbouring Belarus. KPMG estimated that the state budget lost EUR 80mn in tax revenue in 2022 due to cigarette smuggling, which was EUR 1mn more than in 2021.