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Belgium: Rise in Counterfeit Cigarettes Costs Billions in Tax Revenue

by Emily Johnson - News Editor
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Counterfeit and imported cigarettes are increasingly popular in Belgium, prompting concern from the tobacco industry about billions in lost revenue for the state.

The consumption of smuggled or foreign-purchased cigarettes is on the rise in Belgium, according to a study published Wednesday by Cimabel, the Belgian-Luxembourg federation of cigarette manufacturers. As of the fourth quarter of 2025, 44.4% of cigarettes consumed had evaded taxation, a significant increase from 34.9% a year earlier.

Cimabel estimates these untaxed cigarettes represent a loss of more than €3.025 billion in excise duties and VAT on tobacco products. Counterfeit cigarettes accounted for 4.6% of total cigarette consumption in Belgium, up from 1% at the finish of 2024.

“They are produced under unregulated conditions and regularly contain unknown or extremely harmful ingredients,” Cimabel warned in a statement. However, the study reveals that the majority of cigarettes avoiding taxation originate from countries with lower tobacco prices, notably Bulgaria (53.1%), Luxembourg (15.8%), and Turkey (8.7%).

Public authorities are losing out

The practice is particularly prevalent in cities across the country. In several municipalities, more than 40% of smokers purchase their cigarettes outside official channels. “The combination of excessive price increases and new restrictions on alternative nicotine products is driving Belgian consumers into the arms of smuggling and counterfeiting networks,” said Christine De Baets, president of Cimabel. “Both public authorities and public health are the losers in this counterproductive policy. A comprehensive overhaul is urgently needed.”

Cimabel is therefore advocating for a reform of excise policy to reduce the extreme price differences with other European Union countries, increased investment in customs services, and easier access to less harmful alternatives.

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