Dutch smokers cross borders to buy tobacco

"According to estimates by the Dutch Statistics Office, 18% of adults will smoke in the Netherlands in 2024, and the government has been raising excise taxes on tobacco in an attempt to reduce consumption. However, the effect has not been as great as expected, while what has changed is the behavior of smokers, who are willing to travel to Belgium, Germany, or Luxembourg in search of cheaper goods."

"Last year, around 60% of the products consumed came from abroad, according to a study by the Dutch Institute for Health and the Environment (RIVM), an advisory body for the government. Another report, commissioned by the Association of Cigarette and Cut Tobacco Manufacturers (VSK), estimates that the Treasury loses around 2.6 billion ($3.05 billion) annually due to these trips by smokers and illegal trade."

Excise duty increases nearing 60% have widened price gaps, making cross-border purchases in Germany, Belgium and Luxembourg financially attractive. The Dutch Statistics Office estimates 18% of adults will smoke in 2024. The government raised excise taxes to curb consumption, but smoking prevalence fell only from 20% in 2020 to 18% in 2024. A RIVM study found around 60% of consumed tobacco products originated abroad last year. A VSK-commissioned report estimates Treasury losses of about €2.6 billion annually due to travel purchases and illegal trade. Market research by WSPM and Kantar indicates roughly 40% of cigarettes and 50% of rolling tobacco are bought abroad or illicitly. VSK urges tax harmonization, illegal-market enforcement, and oversight of digital sales.

Read at english.elpais.com