Bulgaria has the smallest share of cigarettes not meant for its market in the whole EU. The share averaged 2.6% in 2025 and was 2.2% in the second quarter of this year, companies in the Initiative Against Illicit Trade said today.
The figures come from an annual survey that collects and analyses empty cigarette packs. The share has stayed low for about 10 years, and a level below 3% is long-term and stable.
The results were presented at the Bulgarian Industrial Association (BIA). Representatives of the Interior Ministry, the Customs Agency, the Centre for the Study of Democracy, the National Association of Tobacco Growers (NAT-2010) and others attended the meeting. The companies thanked the Interior Ministry and customs for working together.
Excise duties on tobacco and nicotine products make up 56% of all excise revenue and nearly 10% of tax revenue in the budget. In 2025 they topped €2.1bn. The companies say that a small number of illegal cigarettes helps shrink the grey sector, so tax collection and excise revenue grow every year.
The Customs Agency said October 2026 was a record month for seized illegal cigarettes in the past 10 years. This year customs officers have seized more than 96m cigarettes, and more than 40% of them, over 39m, were seized in October alone. The agency's deputy director Georgi Alexandrov said the record comes from several big seizures in recent weeks. He said working with legal business helps control and budget revenue in every sector.
Since Bulgaria joined Schengen, fighting tobacco smuggling has become harder. Customs has therefore reworked its risk analysis and the way it checks goods. The last few illegal factories shut down in Bulgaria were exporting cigarettes to other EU countries. The companies believe the actions of Bulgarian institutions also help the fight against smuggling across the EU.
Most of the illegal cigarettes in Bulgaria are packs marked "Duty Free". Next come fakes of well-known brands, and their share is growing. The third group is brands unknown on the Bulgarian market, so-called illicit whites – cigarettes made only for illegal sale, with no equivalent on the legal market. The BIA warned that a "Duty Free" label on brands from outside the Initiative's companies is not a sure sign of where the cigarettes come from or whether they are genuine.
"Illegal trade in tobacco products is not just a problem for one economic sector. It affects the whole economy and society," said Dobri Mitrev, chair of the BIA management board. He said this trade costs the budget in unpaid taxes and excise duties, puts legal producers and traders at an unfair disadvantage and helps criminal networks. Mitrev said the fight against it is part of protecting competition, the law and the state's money.
The companies warned that the situation outside Bulgaria and the flow of migrants could put pressure on the market. In their view, good control and clear, predictable rules limit illegal trade and raise budget revenue. To keep this balance, they say, Bulgaria and the EU need to keep the same tax policy and strictly enforce the rules, rather than add more new requirements.
Earlier this month the Sofia Appellate Prosecutor's Office said investigators had seized documents, mobile phones and machines. The investigation is into holding equipment that is known or believed to be for making tobacco products. The pre-trial proceedings are led and supervised by the District Prosecutor's Office in Blagoevgrad.