A KPMG study, commissioned by Philip Morris International (PMI), estimates that the annual consumption of illicit cigarettes in the European Union in 2011 was 65.3 billion cigarettes, a record high.

This equates to 10.4 per cent of all cigarette consumption in the EU and constitutes the fifth consecutive yearly increase.
The study also says that 2011 witnessed a sharp increase in “illicit white” cigarettes, i.e. cigarettes that are manufactured for the sole purpose of being smuggled into and sold illegally in another country. In 2011, illicit whites reached more than 15.7 billion cigarettes across the EU, compared to nearly zero in 2006.
KPMG estimates the annual EU-wide tax loss due to cigarette smuggling to be approximately EUR 11.3 billion.
KPMG has conducted this study every year since 2006, as part of the landmark cooperation agreement between PMI, the European Commission and the EU member states. (ci)