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Ceturtdiena 17.10.2019 | Name days: Karīna, Gaits
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Lithuania declares war against cigarette smuggling

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Lithuania is continuing to fight with cigarette smugglers, aiming to increase 2011 budget revenue, reports Bloomberg.

The so called shadow economy forms up to 30% of the GDP, because people try to save by purchasing illegal goods as tobacco, alcohol and fuel from Russia and Belarus.

«Everyone should understand that by smoking illegal cigarettes you harm not only your health but also your parents and children,» said the Prime Minister of Lithuania Andrius Kubilius. «You are taking away the money for your children’s school or your parents pensions.»

The Baltic states Lithuania, Latvia and Estonia experienced one of the gravest recessions. All three states border with Russia, while Latvia and Lithuania also with Belarus, which makes them a gateway into the EU.

According to the drafted budget, Lithuania plans collecting 1.2 million litai (244.8 million lats) by limiting illegal activities, which is about 1% of GDP. The government has undertaken to reduce the state budget to the EU limit of 3% of GDP by 2012.

The Lithuanian government has approved tougher penalties for smugglers, replacing fines with imprisonment for up to eight years. Similarly Lithuania plans to increase spending on customs enforcement by 15% in 2011, including installation of X-ray scanners at border crossings for 8 million litai.


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  1. O_O says:

    Good job for them!

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