Montenegro has been recognized as a leader in the region in implementing measures to eliminate illicit trade in tobacco products in the Western Balkans, the Ministry of Finance announced.
The government department said that, together with the competent tax and customs authorities, they are committed to a strong fight to suppress the illegal trade in tobacco products, all with the aim of improving the public health of citizens and ensuring stable budget revenues from excise taxes on tobacco products.
It is stated that, as a result of decisive steps, there is a constant growth of the legal market for tobacco products.
This, it is added, was officially confirmed at a recent high-level meeting organized by the Ministry with the support of the Secretariat of the Framework Convention on Tobacco Control of the World Health Organization (WHO) and the WHO Regional Office for Europe.
At the meeting, on the topic of Measures to Eliminate Illicit Trade in Tobacco Products in the Western Balkans, it was assessed that Montenegro has been recognized as a regional leader in that area.
This is evidenced by official data from the Ministry of Finance, which show that in recent years exceptionally good results have been recorded in the tobacco products market, primarily cigarettes.
"Namely, the tobacco products market is recovering very strongly, mostly thanks to the comprehensive fight against illegal trade, as well as the Government's strategic measures, which confirms the preliminary data that the illegal cigarette market last year was between ten and 15 percent," the statement says.
The Ministry recalled that in 2020, cigarette turnover amounted to 607,41 tons and since then, the legal cigarette market has been constantly growing.
"So in 2021, there was an increase of about 35 percent (215 tons), in 2022, an increase of about 75 percent (452 tons); in 2023, an increase of about 86 percent (523 tons) and last year, an increase of about 102 percent (617 tons), compared to 2020," the statement added.
The Ministry said that the Government's intention, in terms of excise policy, in the previous period, was to increase excise rates to the level in the European Union, while respecting the dynamics of gradual increase in excise rates, in order to take into account market stability and the regional aspect of price harmonisation.
"Large differences in the prices of tobacco products among countries in the region would exacerbate the problem of illegal trade and encourage cross-border trade, as well as illegal distribution," the statement said.
It is stated that the consistent implementation of the Protocol on the Elimination of Illicit Trade in Tobacco Products and the joint efforts of the Ministry of Finance and the Customs Administration in combating cigarette smuggling have been additionally strengthened by the implementation of the System for Electronic Management of Excise Stamps.
It is added that European officials and experts, who were in Podgorica in March for a meeting dedicated to measures to eliminate the illegal trade in tobacco products, praised the Government's decision to ban the storage of tobacco products in the Free Zone of the Port of Bar, as well as the decision to revoke the consent for the establishment of the "New Tobacco Plant" free zone.
They also assessed that this resulted in multiple effects for the Montenegrin economy, primarily through the suppression of illegal trade, an increase in cigarette sales through legal channels, as well as an increase in revenue from collected excise duties.
Also commendable, as it is added, are the measures implemented by the Customs Administration in terms of increasing capacity, increased monitoring and control of customs areas, as well as the implementation of modernized, electronic record-keeping and other modern systems in business.
It is stated that official data on the collection of revenues for tobacco products show that in 2023, EUR 100 million was collected on this basis, or 8,85 percent more than in 2022, while last year, compared to 2023, EUR 119 million was collected, or 18,87 percent or EUR 19 million more.
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