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Cigarette smokers in Cyprus may soon feel a heavier pinch in their wallets if proposed European tax changes go ahead, industry officials warned this week.
The Association of Permanent Service Stores (SYKADE), part of the Cyprus Chamber of Commerce and Industry, told customs officials that a pack of cigarettes could jump from around €4.50–€5.00 to as much as €7.50 if the European Commission’s proposed changes to minimum excise taxes are implemented.
“This isn’t just a number on a pack,” said a SYKADE representative. “Such an increase could push more people toward illegal cigarettes, especially from the occupied territories, and hurt both consumers and the legal market.”
Currently, SYKADE estimates that about 13% of all cigarette consumption and more than half of rolling tobacco use come from smuggled products, resulting in losses of over €50 million in tax revenue.
The discussion also focused on stepping up penalties for smuggling and modernizing customs checks, particularly at roadblocks, to curb illegal tobacco flows.
While SYKADE supports public health efforts and recognizes the importance of discouraging smoking, the association stressed that tax policies need to be “balanced and evidence-based” to avoid unintentionally feeding the black market.
Officials said a meeting with the Finance Minister is planned to further discuss the potential impact of the changes on prices, public coffers, and smuggling.
