According to research, the share of the shadow market of tobacco products in Ukraine decreased to 18% in April. This was the result of active actions in this direction by law enforcement and control bodies. This is stated in the message of the association "Ukrtyutyun", writes UNN.
It is noted that, according to the latest "wave" of research on the illegal tobacco market by Kantar Ukraine, the share of the shadow sector of the tobacco market decreased from a record 25.7% in October 2023 to 19.1% in March 2024.
According to preliminary data, in April 2024, the share of the shadow sector further decreased to 18% of the total market.
"At the same time, 18% is a threateningly high rate of illicit trade for the national economy and the state's defense capability, equivalent to more than UAH 20 billion in lost tax revenues. Moreover, stopping there would mean a reactive growth of the shadow sector of the tobacco market, which has repeatedly demonstrated extreme adaptability and high resistance to law enforcement actions, applying creative approaches to overcome crisis situations," said Natalia Fesyun, CEO of the Association "Ukrtubyun" .
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Oleksandr Ruvin, Director of Kyiv Scientific Research Institute of Forensic Expertise, in an exclusive interview with UNN, said that the state and legal producers should be interested in reducing the number of counterfeit tobacco products. At the same time, there should be a clear understanding that only indisputable evidence from forensic experts makes it possible to bring offenders to justice.
"It is the expertise that is evidence in court, so this is a joint task for both expert institutions and law enforcement agencies, all government agencies involved. Of course, the processes are very complicated, not all manufacturers are open to cooperation, and there are other difficulties. There are major players in Ukraine - tobacco manufacturers are large companies that are interested in ensuring that both the state and themselves do not suffer losses from counterfeiting. After all, if there are fewer counterfeits, the manufacturer will sell more of its legal products, make more profit, and, accordingly, more taxes will go to the state budget. They are ready to provide all samples, open data, and cooperate in every way. However, there are cases where the opposite is true, and it is logical to assume that in those cases there are a lot of risks, we are talking about very large-scale losses for the state, which are measured in huge amounts," Ruvin said.