The consumption of contraband cigarettes in Italy increased by 20% in 2014 compared to 2013, netting smugglers an estimated 4.42 billion euros making up 5.6% of the market, a KPMG report for tobacco companies disclosed Thursday.
The illegal trade in cigarettes cost the tax authorities as much as 770 million euros in lost revenue, according to the report commissioned by British American Tobacco, Imperial Tobacco, Japan Tobacco and Philip Morris.
