The Customs Department the Customs Department has highlighted. Speaking on the “Alpha News” program, the Department’s press spokesperson, George Konstantinou, analyzed the European Union’s objectives, Cyprus’s proposals for a phased implementation of the increases, and the specific challenges posed by the trafficking of untaxed products from the occupied territories.
According to Mr. Konstantinou, the European debate on cigarette taxation is based on three main pillars. The first concerns the protection of public health, with the aim of reducing consumption by raising prices, while the second seeks greater harmonization of tax policy among the 27 member states, as significant disparities currently exist. The third pillar concerns the inclusion of new products, such as heated cigarettes, nicotine pouches, and e-cigarette liquids, within a common taxation framework. As he explained, countries such as Cyprus apply relatively low tax rates, in contrast to other European countries where cigarette prices are significantly higher.
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Read more: Tobacco Taxes: Malta’s “Blockade” and Cyprus’s Unique Situation
He placed particular emphasis on Cyprus’s efforts to limit price increases and ensure sufficient time for adjustment. “We have proposed that the transition periods extend until 2036, so that we can gradually move toward these new rates,” he said, explaining that the goal is to avoid sudden price hikes. At the same time, he argued that during Cyprus’s Presidency of the Council of the EU, lower increases than those initially proposed were promoted. However, the increases raise additional concerns regarding illicit trade, given that the significant price differences between the free areas and the occupied areas already serve as an incentive for smuggling.
Regarding the Green Line Regulation, the Customs Department spokesperson clarified that the permitted quantities are strictly limited. “The regulation allows only two packs of conventional cigarettes,” he emphasized, making it clear that the transport of tobacco for hand-rolled cigarettes, heated tobacco products, or hookah tobacco is not permitted under this provision. The trafficking of larger quantities and their diversion into the black market, according to him, is a long-standing problem for customs authorities.
A recent case uncovered in Limassol is illustrative: according to preliminary information presented, the police discovered in a vehicle 113 cartons of heated cigarettes, 98 cartons of conventional cigarettes, and 5,700 grams of tobacco for hand-rolled cigarettes. The individual involved is said to have repeatedly come to the attention of the authorities for similar cases, while, according to the information provided to Mr. Konstantinou, a proposal was submitted to pay €16,500 as part of an out-of-court settlement. As he explained, in such cases, the applicable duties and taxes are calculated, and the frequency of similar offenses is assessed, in order to determine whether the case will be brought before a court or settled out of court.
Finally, referring to the technical problem that had arisen in the Customs information systems the previous day, George Konstantinou stated that backup procedures had been activated to ensure that customs clearances could continue without issues. He clarified that, based on the latest information he had, the problem had not yet been resolved, and there was no information on whether it was linked to a malicious attack—an issue being handled by the relevant IT departments.
