According to a Japan Tobacco International (JTI) report, the COVID-19 pandemic has seen tobacco smugglers profit from high unemployment and less disposable income, reports The Manila Times.

JTI’s senior global director for anti-illegal trade, Ian Monteith, said at a webinar on "Anti-Illicit Trade and Getting to Net Zero: Sustainable Strategies to Stamp out Illegal Trade of Tobacco Product", that tobacco smugglers had taken advantage of the pandemic and the resulting levels of unemployment and less disposable income.
"So, Covid has not prevented criminals from profiting. Rather, the pandemic has put pressure on consumers' purchasing power and pushed them to turn to illegal products," he said.
A report from JTI shows that, in 2020, 34.2 billion illegal cigarettes were smoked in the EU, the UK, Norway and Switzerland, which accounts for 7.8 per cent of overall cigarette consumption in the EU, reports The Manila Times. This equals EUR 8.5 billion in tax losses for the governments in question. The report also shows that, at 32 per cent, France has the highest rate of illicit cigarette traffic in Europe, that South Africa’s prohibition law is proving to be ineffective and that more and more illegal cigarettes reaching the Philippines.
JTI Philippines general manager, John Freda, said that smuggling syndicates are continuing their trade despite successful raids by law enforcement officials and that even fines of up to PHP 50 million (EUR 847,490) and prison sentences were not helping to deter them.
"Stiffer sanctions are required — we need to see people being caught and brought to justice in a way that deters others from being part of this criminal endeavour," said Freda.