Illicit Tobacco Use Doubles In Spain As Smokers Hunt For Cheaper Packs

New figures show that illicit baccy usage successful Spain has almost doubled this year, jumping to 10.2 per cent of nan market.

This takes usage backmost to levels not seen since 2017, according to an Ipsos Empty Pack Survey.

Price hikes pushing smokers to nan achromatic market

Experts opportunity nan emergence is linked to 2 large taxation hikes successful 2025. The authorities accrued baccy prices successful June and again successful July to effort to trim smoking and boost revenue. But galore smokers are now looking for cheaper alternatives, turning to non-Spanish sources for their cigarettes.

Much of nan illicit baccy comes from adjacent areas for illustration Gibraltar, Andorra, and Portugal, wherever prices are overmuch lower. This includes contraband, counterfeit products, and baccy legally bought successful places pinch little taxes, for illustration nan Canary Islands.

Huge losses for nan state

Experts had already warned that hiking taxes excessively overmuch mightiness backfire, urging a smarter attack that cuts smoking without boosting nan achromatic market. The authorities has already missed retired connected €467 million successful nan first six months of nan twelvemonth because of forbidden tobacco.

This besides comes amid an EU-wide baccy taxation debate. 16 EU nations person called connected Brussels to update nan EU’s baccy taxation rule truthful that physics cigarettes and different newer products tin beryllium taxed reasonably nether a unified system, possibly hoping to plug nan taxation gap.

Smuggling connected nan rise

Spain’s customs authorities are noticing nan inclination too. In 2024, complete 3.5 tonnes of contraband baccy were seized successful nan first 8 months, up 72 per cent connected nan erstwhile year. Criminals are utilizing caller tactics, including drones and societal media, to get forbidden cigarettes crossed borders.

Smuggling is still heavy focused connected nan separator pinch Gibraltar. Earlier this year, nan Guardia Civil seized 100,000 packs of contraband and arrested 13 group successful nan Campo de Gibraltar area.

The tricky balance

Spain now faces a dilemma. Officials want to trim smoking, but hiking taxes excessively precocious pushes much group toward nan forbidden market. Experts opportunity a much cautious attack could protect some nationalist wellness and taxation income.

Public wellness advocates besides pass that illicit baccy is dangerous. These products skip value controls and tin moreover money different criminal activities, creating risks beyond conscionable smoking.

As Spain wrestles pinch rising taxes and black-market tobacco, smokers will support looking for cheaper packs, and authorities will person their hands afloat trying to extremity them.