Cigarette prices in Cyprus could rise to 7.50 euros due to EU excise duty changes

The Association of Convenience Stores (SYKADE), a member of the Cyprus Chamber of Commerce and Industry (KEBE), has warned of a significant increase in cigarette prices following a meeting with the Director of the Department of Customs. According to a proposal by the European Commission to revise the tobacco taxation framework, the minimum excise duty could cause the price of a pack to rise from the current 4.50–5.00 euro range to 7.00–7.50 euros. SYKADE argues that such an increase would significantly impact the legal market and shift consumer behavior. The association expressed specific concern regarding the strengthening of smuggling from the occupied areas, which currently accounts for 13% of total cigarette consumption and 53% of hand-rolling tobacco. These illicit activities result in annual losses exceeding 50 million euros for public revenue. During the meeting, SYKADE called for stricter penalties for tobacco smuggling and the modernization of customs operations at checkpoints using modern technology. While supporting public health policies aimed at reducing smoking, the association emphasized that taxation must remain balanced to avoid unintended consequences on the legal economy. The potential revision of the European taxation framework is currently under consultation.