Cyprus kiosk owners warn of tax hike impact on tobacco trade

The Cyprus Kiosk Association (Sykade), led by president Andreas Theodoulou, has warned that proposed increases in tobacco taxes could damage the legal retail sector. The association claims that 13% of cigarette consumption and 53% of rolling tobacco consumption in Cyprus currently originates from the occupied north. Due to the island's unique situation regarding the Green Line, officials argue that higher prices will drive consumers toward illicit markets. Current cigarette prices ranging from €4.50 to €5 could rise to between €8 and €8.50 under new EU-level excise duty revisions. Sykade estimates that the state already loses over €50 million annually due to illicit tobacco trade. The association is calling for greater flexibility in taxation policy to protect small businesses and maintain market control. Industry representatives express concerns that these fiscal changes will negatively impact both government revenue and local retailers.