2011 Contraband Cigarettes Sold in Spain

Spain’s Tobacconist Association stated that contraband sales of cigarettes accounted for 7 to 8 percent of the cigarette market in the country in 2011, up from virtually zero the year before. The rise in cigarette smuggling is attributed to a rise in tobacco taxes and a ban in smoking in public places.

The smuggling of contraband cigarettes is estimated to have caused tobacco tax collection to be 14 percent lower than estimated forecasts.

Source: Manuel Baigorri, “Smugglers Prosper in Spain’s ‘Perfect Storm’ for Tobacco,” Bloomberg BusinessWeek, February 8, 2012.