NAV reports success against illegal tobacco market

Written by Christina Vontin

The National Tax and Revenue Authority (NAV) achieved record figures for seizures of cigarettes and tobacco last year.

Last year, the NAV recorded significant successes in the fight against the illegal tobacco market. According to Major General Tamás Demeter, Vice President of the authority, 118.5 million cigarettes were confiscated, which is three times more than in the previous year. In addition, almost 120 tonnes of consumer tobacco were seized, a 24-fold increase.

Three illegal tobacco factories were also uncovered. The tax inspectors seized almost 75 million cigarettes and 95 tonnes of tobacco in the cigarette factories and warehouses discovered. 80-90% of the main tobacco growing areas in Hungary are in Szabolcs-Szatmár-Bereg and Hajdú-Bihar counties. Criminals from these regions know exactly when tobacco leaves are harvested. Stolen tobacco leaves are then used for the commercial production of tobacco at home.

In addition to production in Hungary, cigarette smuggling is also flourishing. The NAV Vice President reported on the many different methods used by smugglers. There are numerous camouflage techniques on the roads, which are known to the tax authorities, but the smugglers’ creativity seems to know no bounds. The most common method used by smugglers is to hide in the factory cavities of vehicles. Tobacco products are often concealed under regular transport goods. Smuggled goods have even been found in tins of Bulgarian goat’s cheese. Road checks have shown that many vehicles have been specifically modified for smuggling, for example with double floors or rear walls.

Smugglers on the border with Ukraine are increasingly relying on modern technologies. NAV employees regularly intercept drones. These man-sized, aeroplane-like devices transport up to 300 packets of cigarettes and drop the Ukrainian goods on Hungarian territory using GPS coordinates. Occasionally, the smugglers also let their goods drift across the Tisza.