45% of All Cigarettes Smoked in Britain Last Year Were Illicit
A significant portion of cigarettes smoked in the UK last year were illicit, with 45% classified as such. The black market for cigarettes has surged, making the UK the second-largest illicit cigarette market in Europe. This rise in illegal cigarette consumption has resulted in substantial tax losses for the Treasury.
- ▪45% of all cigarettes smoked in the UK last year were illicit.
- ▪The black market for cigarettes increased nearly 20% to its highest level on record.
- ▪The Treasury lost approximately £4.46 billion in tax revenue due to illegal cigarette consumption.
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Almost half of all cigarettes smoked in the UK last year – 45% – were illicit, with 32.3% counterfeit, or contraband according to KPMG analysis commissioned by Philip Morris International. And a further 13% were bought abroad… The black market jumped nearly 20% to its highest level on record, making the UK the second-largest illicit cigarette market in Europe after France. More than ten billion illegal cigarettes were consumed in 2025, costing the Treasury approximately £4.46 billion in lost tax, enough to fund 95,000 police officers.
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