A sharp increase of the tobacco tax in Portugal can lead to the growth of illegal consumption

Written By Manuel Poças

A study suggests that a sharp increase of the tobacco tax in Portugal can lead to the growth of illegal consumption.

A recent European study drew attention to the fact that imposing a very high tax on the consumption of tobacco can lead to an increase in the illicit consumption of the product.

The study, which was performed by Povaddo and requested by Philip Morris International, covered 13 European member states including Portugal.

According to the results:

78% of Portuguese people believe that the decision makers, in order to reduce the overall amount of smoking, should not only increase taxes but also engage in active dialogue with consumers.

79% of the Portuguese think that a sharp tax increase may lead to the growth of illegal consumption, as users will look for alternative supply sources, which are cheaper.

74% of Portuguese people believe that the current method (only an increase of taxes) hinders efforts to make it harder for minors to access tobacco products, as it will be easier for them to access such products through the black market. The rationale is that if the illegal market gets bigger, it will make it easier for minors to access the products.

Last but not least, 56% of the Portuguese think that increasing the tax on tobacco will lead to the growth of the black market, which will hinder efforts to reduce the amount of smoking in Portugal. In short, the increase in tax, by itself, will go against the overall objective.

Note that, in 2022, the Portuguese Tax Authority lost 32 million euros due to the illegal consumption of tobacco.

Stay up to date
Subscribe To Portugal.com's Newsletter

Receive the latest news, travel information, stories, offers and more!

Invalid email address
Give it a try. You can unsubscribe at any time.
Join our FB group Portugal Travel & Living for all things Portugal and news updates

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Follow Us

513FansLike
5,738FollowersFollow
159FollowersFollow

Most Popular

Expat Guide: Moving to Lisbon

Moving to a new city is always daunting, especially if you are relocating to a whole new country. If you are moving to Lisbon...

The 2024 US Presidential Election and Its Impact on Migration to Portugal

The results of the 2024 US presidential election have sparked renewed interest in international migration, particularly to Portugal through its Golden Visa program. As...

D8 – Portugal Digital Nomad Visa

In October 2022, Portugal made it an even more exciting time to be a digital nomad with the launch of the Portugal Digital Nomad...

Latest Articles