Smuggling and Cigarette Taxes

The Ukrainian tobacco companies argued that a tax increase in Ukraine would increase smuggling - in Hungary they seem to have a different view...

"Illegal products have an estimated 10% of the cigarette market. Most smuggled cigarettes come from Ukraine, where lower taxes mean cigarettes are cheaper."

http://www.realdeal.hu/20091208/black-market-in-cigarettes-booms-as-tax-gap-with-ukraine-fuels-smuggling