Nearly 10% of Cigarettes in Poland Now Illicit, Industry Groups Warn

A coalition of industry stakeholders in Poland is sounding the alarm over a dramatic increase in the illicit cigarette market, which now accounts for nearly one in every ten cigarettes sold. The warning comes from a joint statement by employer organizations, trade associations, producers, and farmers' unions.

These groups attribute the surge in the black market directly to recent hikes in tobacco excise taxes. They argue that the increased tax burden has made legal cigarettes less competitive, driving consumers towards cheaper, untaxed alternatives.

Compounding these concerns, the industry groups highlighted that state budget revenues from tobacco excise taxes in 2025 fell considerably short of the finance ministry's projections. This suggests that the tax increases, intended to boost revenue, have instead stimulated illicit trade and potentially reduced overall tax collection, creating a fiscal shortfall.