Illicit trade in tobacco and vapor products has become a critical challenge facing policymakers, regulators, revenue authorities, and law enforcement. Once seen as a secondary issue compared to narcotics or counterfeit pharmaceuticals, illicit tobacco is now a clear and present threat for many countries across the globe.

According to Tobacco Reporter, Indonesia’s government is conducting an in-depth review of its cigarette excise system following allegations of forgery and manipulation, Finance Minister Purbaya Yudhi Sadewa said after a meeting with President Prabowo Subianto.

In September, technical experts from the WHO Framework Convention on Tobacco Control (FCTC) Secretariat engaged with Chad government officials, parliamentarians, civil society organisations and other national stakeholders in a joint needs assessment to support the country’s implementation of the FCTC Protocol to Eliminate Illicit Trade in Tobacco Products, which it has been party to since 2018.

In the June 2025 issue of Tax Stamp & Traceability News™, we reported that KPMG had released its ‘Illicit Cigarette Consumption in Europe’ report for 2024, commissioned by Philip Morris. Prompted by a later in-depth report by the British Broadcasting Corporation (BBC) on the illicit cigarette trade in Hull, a port city on England’s North Sea coast, this article examines the situation in the UK as a whole.

In April this year, President Noboa of Ecuador, who has positioned himself and his administration as focused on law and order, was re-elected with over 55% of the popular vote. His stance on fighting corruption and drug- related violence might prove fertile ground for a more efficient fight against other criminal activity such as the rise in contraband cigarettes. Months before the election, a congressional justice committee highlighted the importance of tobacco traceability in a draft bill against illicit trade but, so far, the regulations established in late 2021 remain in force.

Amid sweeping efforts by President Milei’s government to reform Argentina’s tax administration, the country’s tobacco tax stamp programme is an important step towards such reform. While the programme has helped Argentina’s tax authority reconcile production volumes with the number of products actually sold and taxes paid, there is an ongoing price disparity in the market, between manufacturers and resellers, that is ultimately resulting in less tax going to the government.

At the recent Tax Stamp & Traceability Forum™, Dr Hana Ross from the World Bank Global Tax Program shared findings from a 2020 study examining Poland’s approach to regulating the raw tobacco supply chain. The study highlighted how targeted controls helped the country significantly reduce its illicit tobacco trade.

According to the Pakistani press, the country’s government has introduced an amendment to the 1934 Petroleum Act to implement real-time tracking of petroleum products, from import and production to retail sale. This move aims to reduce massive annual revenue losses estimated at PKR 300-500 billion ($1.1-$1.8 billion), due to smuggling and adulteration of petroleum products.

The global software engineering company ELEKS has been awarded a tender to develop Ukraine’s ‘e-Excise’ tax stamp and traceability programme for tobacco and alcohol products.

Following a tender process launched in 2022, the Ethiopian Ministry of Finance has recently introduced a new excise stamp management directive.