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 International. 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.

KPMG has released its latest annual study on illicit cigarettes in Europe, commissioned by Philip Morris Products SA, and covering 38 European markets (including 27 EU member states). The study shows that while overall illicit consumption in Europe grew marginally in 2024 (by 0.2%), consumption in the EU27 soared by 10.8% to reach 9.2% of the total market – the highest level in nearly a decade.

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.

The UK’s decision to implement a new vaping products duty, paired with a mandatory duty stamp, marks a pivotal evolution in its regulatory posture toward nicotine-containing vape products.

In March, the tobacco industry launched an extensive media campaign, making exaggerated claims about the illegal cigarette trade in Pakistan and advocating for tax reductions. This campaign has been widely publicised, attempting to paint a picture of rampant illicit trade in the cigarette market, allegedly causing significant revenue losses to the government. However, the data and methodologies used to support these claims appear to be misleading, creating an inflated perception of the extent of the problem.

Bangladesh’s National Board of Revenue (NBR) chairman Md Abdur Rahman Khan has announced that the NBR is considering introducing QR codes on tobacco tax stamps.

The American Lung Association (ALA) has called for the US Food and Drug Administration (FDA) to propose and finalise regulations to implement track and trace technology on all tobacco products to prevent illicit trade, including counterfeiting and smuggling activities.

One of the features in the final issue of Tobacco Reporter, published in December 2024, described how the Belarusian tobacco industry has been shrouded in secrecy for over a decade.

Hong Kong’s new Commissioner of Customs and Excise Chan Tsz-tat has announced that a tax stamp system for tobacco could be introduced in the third quarter of 2026 at the earliest, with a pilot scheme set for mid-2025.