Belgium is facing a growing problem with illicit cigarettes, as nearly one in three consumed in the country is either smuggled or counterfeit, according to a new report by Cimabel, the
Belgian-Luxembourg federation of cigarette manufacturers.
The report highlights a sharp rise in untaxed cigarettes, which accounted for 36.5% of the total market in the second quarter of 2024—up significantly from 20% the previous year. While counterfeit cigarettes remain relatively rare at just 1%, the majority of illegal tobacco products are sourced from countries with lower prices, such as Bulgaria.
Tax hikes driving black market growth
Cimabel attributes this surge to steep tax increases imposed by the previous federal government, which have led more consumers to seek cheaper alternatives through illicit channels. The industry warns that these policies are backfiring, depriving the state of revenue while boosting profits for criminal networks.
Belgium: a growing hub for tobacco smuggling
Belgium has long been known as a transit point for drugs and arms trafficking, and now it is increasingly becoming a key hub for illegal tobacco. Organized crime groups are capitalizing on high cigarette prices by smuggling large quantities of cheaper products and selling them at a profit.
Authorities have stepped up efforts to combat the trade. In February, law enforcement dismantled the largest illegal cigarette factory ever found in Belgium, located in Lommel, Limburg. The operation led to the seizure of nearly 30 million cigarettes—representing an estimated €14.4 million in unpaid taxes—and the arrest of 50 individuals, mainly from Ukraine, Moldova, and Romania.
Calls for policy review
Despite stringent anti-smoking measures, the tobacco industry argues that excessive taxation is fueling the black market rather than curbing cigarette consumption. Cimabel is urging the government to reassess its excise policies, warning that continued tax hikes could further empower illegal operations while weakening state revenues. Photo by Challiyil Eswaramangalath Vipin from Chalakudy, India, Wikimedia commons.