(Arab World News Agency) – The trade of smuggled cigarettes in Yemen has flourished due to the high prices of local cigarettes. Officials have confirmed that cigarette smuggling inflicts significant losses on the Yemeni economy by depriving it of tax revenues estimated in the billions of riyals, in addition to its severe health risks due to the lack of regulatory oversight.
Authorities in the city of Aden have initiated field campaigns to confiscate smuggled cigarettes at points of sale.
Suhail Al-Qumeiri, Director of Kamaran Industry and Investment Branch in Taiz, described smuggled cigarettes as a nightmare troubling local cigarette manufacturers.
He said, “Smuggled cigarettes in the Yemeni market have become a nightmare for national cigarette manufacturing companies, directly affecting their sales and significantly reducing their market shares. Smuggled cigarettes now dominate 60% of the total market, leading to a substantial reduction in state tax revenues, with the public treasury losing tens of billions annually.”
Jamal Sarour, Head of the Tax Authority in Aden, emphasized the necessity of combating smuggled cigarettes to revive the tax authority’s revenue.
He stated, “The impact of these cigarettes extends beyond their effects on society and individual health; it also affects the revenue generated from cigarette taxes. The tax on cigarettes amounts to 90% of their value. Notably, cigarette factory revenues represent the second-largest source of income after oil derivatives, with oil derivatives being the foremost, followed by cigarettes and then taxes on other products. The more successful we are in combating this phenomenon, the more local national factories will produce, thereby increasing tax revenues.”
Yemeni citizens confirm that their primary reason for purchasing smuggled cigarettes is their lower prices compared to local cigarettes.
Mahfoud Ismail, a resident of Taiz, said, “We used to smoke local cigarettes like Kamaran, Rittman, and Ghamdan, which were cheap, with a pack costing 100 or 150 Yemeni riyals. Today, it costs 2000 or 1500 riyals, so now we turn to smuggled cigarettes. True, their harms are severe and tiring, but what can we do? We are a struggling people, and we buy these cigarettes because they are cheap.”
