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Last Friday, two Cypriots and a British national were apprehended at Paphos Airport with illegal tobacco products valued over €30,000 while attempting to smuggle them into the UK. This marks the eighth successful arrest by the Customs Department this year. The illegal trade of tobacco and vaping products from the occupied territories remains rampant in Cyprus due to regulatory gaps, with significant profits enticing traffickers despite minimal prison risks.
A pack of cigarettes in the UK, costing about €14-15, can be bought in the occupied territories for as little as €2-2.50, offering a substantial profit margin. Annual state revenue losses due to cigarette smuggling are estimated around €50 million.
Between July 1 and July 23, the Customs Department halted seven cases involving the illegal transportation of duty-free tobacco from the occupied territories. Paphos Airport has been a frequent site for these operations, often due to traffickers’ misperceptions of lax security. This July set a record for tackling this issue, with additional seizures occurring at the Agios Dometios crossing point.
A notable case involved a 68-year-old man arrested on July 11 in Nicosia with over 4,000 cigarette boxes, 125 kg of rolling tobacco, and 775 vaping products, totaling over €185,000. The individual had previously been involved in similar smuggling activities.
In total, eight recent cases have resulted in the seizure of 4,876 cartons of cigarettes and approximately 155 kg of rolling tobacco, with an estimated value of €400,000-€500,000. Organized trafficking networks operate across the Green Line, with illegal products also sold through various outlets, including mini-markets and kiosks.
According to KPMG’s 2022 report, smuggling constitutes a significant portion of the market, with ready-made cigarette smuggling at 12.8%, rolling tobacco at 52.6%, and heated/vaporized products at 25%. Revenue losses from smuggling are estimated at €51.5 million for 2022, contributing to a broader trend of declining cigarette sales in the region.
[Summary of Yiannis Ioannou's original story in Greek published in Kathimerini's Cyprus edition]
