Organised crime driving illicit cigarette factory boom ‘in almost every EU state’

Gangs are increasingly moving production inside the EU ‘to shorten supply chains and get closer to consumers’. Photograph: Cavan Images/Alamy

The illegal trade in tobacco is booming in the EU, according to a report by the bloc’s financial watchdog, with almost one in 10 cigarettes produced illicitly or smuggled, causing an estimated €13bn loss in tax revenue each year.

The European Court of Auditors (ECA) said in a report on Tuesday that the trade had “changed significantly” in recent years as smuggling, while still “a problem”, was overtaken by illicit manufacturing, which has increased dramatically in the bloc.