Prime Minister's Office: Fight against tobacco smuggling is not just tax policy - Bloomberg award is confirmation of government's efforts

Blumberg Award for Global Tobacco Control is awarded for outstanding results in this field. The Ministry of Finance, as communicated by the Government of Montenegro, has been awarded this year for effective tobacco control, which involves raising excise taxes as well as fighting against the illegal trade of tobacco products.

In order for the increase in excise taxes to yield results and increase state revenues, it is essential to create conditions that reduce cigarette sales on the black market. If this policy is not successfully implemented, a repeat of the 2017 collapse would occur when the increase in excise taxes led to a sudden rise in black market sales, which caused state revenues from legal tobacco sales to begin to decline!

This is a clear indicator that the successful implementation of tax reforms is directly related to stopping the illegal sale of tobacco and tobacco products. Data from the Ministry of Finance confirm that the reforms have to the desired result, which has been recognised by the Blumberg Foundation.

Last year’s legal sales of tobacco products, compared to 2018, increased from 530 tons to 1223 tons, while the revenue from excise taxes increased by staggering EU 80 million. Revenue grew from EUR 40.63 million to 119.15 million in 2024. This is unequivocally the result of limiting the black market through a decisive fight against illegal trade in tobacco products, the confiscation and destruction of seized cigarettes, as well as the arrest of members of groups suspected of engaging in illegal activities for unlawful gain, while simultaneously destroying the image and reputation of the State of Montenegro.

Montenegro is now presented as a positive example of effective tobacco control, and this could only be achieved through complete dedication to reforms and zero tolerance towards the decades-long “state business” – cigarette smuggling.