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Straits Times
11-06-2025
- Business
- Straits Times
Criminals turn to drones and social media to sell illegal cigarettes
FILE PHOTO: Illegal produced cigarettes are seen during a news conference of German customs (Zoll) in Cologne, Germany, August 25, 2020. REUTERS/Stephane Nitschke/File Photo LONDON - Tobacco smugglers and black market salesmen are increasingly using technologies such as social media and drones to deliver cigarettes to smokers in Europe and avoid law enforcers, a report by consulting group KPMG published on Wednesday found. The report, produced annually and commissioned by Philip Morris International, looks at illegal consumption of cigarettes on the continent - which big tobacco companies say costs them sales and authorities say costs them tax revenues. In 2024, KPMG found that almost 40 billion illicit cigarettes were consumed across 38 European nations, based in part on a study of empty packs collected in those countries. It also cited interviews with law enforcement. The gangs' flexible strategies have helped to drive a 10.8% increase in illicit consumption versus 2023, according to KPMG, which also attributed the rise to higher taxes and prices in markets including France and the Netherlands. The report said criminal groups had shifted towards smuggling smaller packages, more often, via budget airlines. They are also making greater use of rail and drones, and are increasingly bypassing physical stores to sell directly to consumers on social media, it continued. The more recent change in tactics follows another shift from 2020, when the groups moved production closer to end-markets, partly in response to the pandemic disruption, but also reducing the chance of detection. KPMG said in 2024 the groups had also begun holding less inventory, which is reflected in a decrease in the size of illicit cigarette seizures as the gangs mitigate their risks and reduce the impact of raids by law enforcers. Big tobacco companies say tax increases have driven growth in illicit cigarette consumption. Public health campaigners and institutions such as the World Bank, however, have said such claims are overblown and that high taxes can support public health by reducing tobacco consumption, while generating revenues for governments. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
11-06-2025
- Business
- The Star
Criminals turn to drones and social media to sell illegal cigarettes
FILE PHOTO: Illegal produced cigarettes are seen during a news conference of German customs (Zoll) in Cologne, Germany, August 25, 2020. REUTERS/Stephane Nitschke/File Photo LONDON (Reuters) -Tobacco smugglers and black market salesmen are increasingly using technologies such as social media and drones to deliver cigarettes to smokers in Europe and avoid law enforcers, a report by consulting group KPMG published on Wednesday found. The report, produced annually and commissioned by Philip Morris International, looks at illegal consumption of cigarettes on the continent - which big tobacco companies say costs them sales and authorities say costs them tax revenues. In 2024, KPMG found that almost 40 billion illicit cigarettes were consumed across 38 European nations, based in part on a study of empty packs collected in those countries. It also cited interviews with law enforcement. The gangs' flexible strategies have helped to drive a 10.8% increase in illicit consumption versus 2023, according to KPMG, which also attributed the rise to higher taxes and prices in markets including France and the Netherlands. The report said criminal groups had shifted towards smuggling smaller packages, more often, via budget airlines. They are also making greater use of rail and drones, and are increasingly bypassing physical stores to sell directly to consumers on social media, it continued. The more recent change in tactics follows another shift from 2020, when the groups moved production closer to end-markets, partly in response to the pandemic disruption, but also reducing the chance of detection. KPMG said in 2024 the groups had also begun holding less inventory, which is reflected in a decrease in the size of illicit cigarette seizures as the gangs mitigate their risks and reduce the impact of raids by law enforcers. Big tobacco companies say tax increases have driven growth in illicit cigarette consumption. Public health campaigners and institutions such as the World Bank, however, have said such claims are overblown and that high taxes can support public health by reducing tobacco consumption, while generating revenues for governments. (Reporting by Emma Rumney; editing by Barbara Lewis)
Straits Times
29-04-2025
- Business
- Straits Times
Germany's crumbling bridges need additional funds, auditors say
FILE PHOTO: A drone image shows the re-construction of the Rahmedetal bridge, which gained fame because the A45 motorway in the heart of Germany had been closed for years due to Germany's dilapidated infrastructure and the debt brake, near Luedenscheid, south of Dortmund, Germany, March 27, 2025. REUTERS/Stephane Nitschke BERLIN - Germany is lagging on its targets to renovate the country's dilapidated bridges by 2032 and needs to boost investment, according to auditors, who said the government's goals appear unachievable. Only 69 of the 280 structures scheduled for renovation in 2024 under the 2032 plan had been modernised, Germany's federal audit office said. To achieve the target, Autobahn GmbH, which is in charge of the renovations, would have to modernise around 590 substructures every year from now on. "That doesn't seem realistic," Kay Scheller, president of the office, said. "The gap between planned and successful modernisation will continue to widen over the years," she said. The audit office, which accused the transport ministry of presenting progress too positively and of falling short on the targets, said a total of 2.1 billion euros ($2.39 billion) would be required for 400 substructures in 2026, while the ministry put the sum at 1.4 billion euros. The transport ministry disagrees with this assessment of "embellishing" the numbers, noting that the modernisation of bridges is a top priority, a spokesperson for the ministry told Reuters. "The implementation of the programme is on schedule and is communicated transparently by the transport ministry and Autobahn GmbH," the spokesperson said. The German auditors demanded more funds for the government-owned Autobahn GmbH without giving an exact figure, as that depends on construction price developments. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
