Customs officers from the Zagreb Mobile Unit, in coordination with police officers, carried out a successful operation to combat illegal tobacco trade in the Velika Gorica area on September 6, 2024. During this operation, which is part of a broader strategy against the black market of tobacco products, a taxi vehicle with Zagreb registration plates was stopped, inside which 140.80 kilograms of finely cut tobacco without tobacco stamps were found.
Upon inspection of the vehicle, 15 PVC bags filled with tobacco prepared for further distribution on the illegal market were found. The suspects are believed to have committed a criminal offense under Article 264 of the Croatian Criminal Code, relating to illegal trade. In addition to the tobacco seizure, the vehicle used for transporting these products was also confiscated, further ensuring the collection of excise duties from the perpetrators.
Wider implications of the black market for tobacco
The market for illegal tobacco products not only negatively impacts the state budget but is also linked to other forms of crime. It is estimated that Croatia loses billions of kuna each year due to evasion of excise duties and taxes on tobacco products. Particularly concerning is the high presence of unmarked cut tobacco, which represents a significant share of the black market.
According to estimates, around 19% of total tobacco consumption in Croatia is accounted for by products that are not taxed. Although this percentage has remained stable in recent years, it poses a significant problem for Croatian authorities, who face challenges in law enforcement and tax revenue collection. Customs services and the police are increasingly conducting coordinated operations like this one to curb further growth of the black market.
International perspective
The trade in illegal tobacco products is not limited to Croatia. This problem has a transnational character, with tobacco smuggling present throughout the Balkans. International organizations and European authorities regularly conduct operations to prevent illegal tobacco trade. The European Union is also introducing measures such as a tracking system for tobacco products to reduce illegal sales and increase transparency in the supply chain.
International operations, such as those carried out by OLAF, result in the seizure of large quantities of illegal cigarettes and tobacco, preventing the loss of hundreds of millions of euros in tax revenue annually. These actions are crucial for reducing the presence of the black market and strengthening legitimate business in the tobacco industry.
Consequences for perpetrators
The suspects in Velika Gorica face the filing of a criminal complaint with the relevant authorities, and in addition, they are subject to high fines. Due to the seriousness of the offense and potential damage to the state budget, customs and police services have the right to seize not only the goods but also the vehicles used in the commission of the criminal act.
This case is another example of how coordinated efforts by state bodies can successfully prevent illegal trade and reduce the impact of the black market on the economy. In the future, further tightening of regulations and increased oversight are expected to combat this pervasive phenomenon.