German smokers annually “punish” the budget of the Federal Republic of billions of euros

Germany in 2008, lost at least 4 billion euros for cigarettes that are smoked Germans, but which are not tax deductible. Local smokers preferred to buy tobacco abroad or on the black market.
  

Investigation of the Hamburg Institute of World Economy, HWWI, said that the number of cigarettes smoked in Germany and no tax has increased over 3 years from 16% to 20%, or 23 billion cigarettes. The majority of them were bought legally in other European countries. Only 7 billion cigarettes entered the territory of Germany illegally, experts say.
 

Institute also said that the difference in the price of tobacco, caused by the high level of taxation in Germany, let organized crime flourish at the expense of smuggling. Experts point out that the situation is similar to the one prevailing in the U.S. because of different taxation policies in different states. Now this practice came to Europe.
 

Smokers trying to buy cigarettes cheaper, thereby evading the payment of high taxes. Its last increase in February 2009 led to what became a pack cost to Germany of about 4.5 euros, of which about 3,75 euro are tax component. "In the new EU member states the tax on cigarettes is much lower than here in Germany, and therefore will always go smuggling. They are simply much cheaper", - argues director HWWI Michael Broyninger.
  
Most

smuggling comes from the Ukraine (3.2 billion euros) anbebd Russia (2.4 billion), according to research organization Ipsos. In addition, within regions of Germany the consumption of contraband cigarettes are vastly different. If the west of the country, their share does not exceed 10%, in the east the figure is around 50%. A large number of smuggled cigarettes come from Poland.

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