Dutch Treasury Loses €2.6B to Tobacco Purchases Abroad

The Dutch government gets some €2.6bn less each year in revenue from the 19 Euro-area members and its neighbours, as more smokers choose to take their custom for cigarettes and rolling tobacco outside the country. This is significantly up on the €1.4 billion recorded in 2020, according to market research by the tobacco industry association VSK.

3 months Ago


Impact of Excise Duty Increases
The significant growth was largely fueled by an increase in excise duties put into place over the next two years — the data comes from the National Monitor Smuggling. Smokers from the Netherlands are buying more and more tobacco in other countries, like Luxembourg or Germany, but also through social media and the illegal circuit. Jan Hein Sträter, director of VSK, said that people still smoke just as much, but that they are looking for cheaper alternatives and that price comparisons are usually one of the criteria upon which people base their buying decision.



Shift in Purchasing Patterns
Excise directive would see €3bn in revenue from up to 3 million SENNA subtraction this year, says the Study. Nevertheless, the figure would have almost doubled if all tobacco products had been purchased within the country. Some 40 per cent of cigarettes and close to 50 per cent of rolling tobacco were bought overseas last year, compared with 25 per cent in 2023.

By comparison, you pay up to half of what we do for a pack of cigarettes in neighbouring countries like Germany, Belgium and Luxembourg.

Call for Policy Alignment
The VSK has appealed to the Dutch government to align excise duties with neighbouring countries, both to fight cross-border shopping and criminal trade. The association also thinks this could help them recoup lost income and re.

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