In Russia, they proposed to eliminate the illegal cigarette business

Businesses illegally selling tobacco and nicotine-containing products want to be forcibly liquidated. This is on Friday, June 27, according to the recommendations contained in a study by the Expert Council on Economic Whitewashing under the State Duma and the Public Consumer Initiative with the participation of the Anti-Counterfeit Association.

Liquidation is proposed to be carried out in case of refusal of entrepreneurs to register in the labeling system, they said.

The document reports an increase in violations related to the illegal trade of these goods. So, if 692 warnings were issued in 2022, then in 2024 there were already more than 4.1 thousand. There has also been an increase in cases where entrepreneurs in the tobacco retail trade use illegal practices in the field of cash register equipment.

"When 96% of violations in tobacco retail are committed by individual entrepreneurs, this is a signal not for stricter bans, but for systematic work with small businesses," explained Artem Kiryanov, head of the Expert Council and deputy chairman of the Committee on Economic Policy, Izvestia.

According to him, it is necessary to create a digital ecosystem where compliance with requirements will become easier than their violation. Automation of control through GIS MT, integration with banking systems, simplification of registration procedures are tools to support bona fide entrepreneurs.

"The study clearly shows that avoiding CCT is directly related to the trade in unlabeled products. This means that consumers are buying goods of unknown origin that may harm their health, and the state is losing tax revenue," said Oleg Pavlov, head of the Public Consumer Initiative.

He added that restrictions on inspections and the application of sanctions hinder the implementation of already adopted laws on labeling and cash registers.

"We have all the tools to combat counterfeiting — GIS MT, mandatory labeling, online sales registers. But when we see a 465% increase in violations, it is a signal that the approach to control and responsibility for violations in a particular area requires transformation. After all, the health of consumers and the interests of the state are at stake," the social activist explained.

According to Baysolt Khamzatov, First vice-president of the international Association of Anti-Counterfeiting, research has confirmed long-term observations. The problem of counterfeit tobacco products is directly correlated with violations in the field of CCT application and labeling. When an entrepreneur does not use a cash register, he automatically creates a "gray zone" where trade in unmarked products of unknown origin flourishes, he explained. Illegal trafficking means billions of rubles in lost taxes and huge risks to the health of citizens, Khamzatov said.

Smoke mixtures: where illegal tobacco comes from in Russia

Counterfeit goods are traded through messengers and in large markets.

On June 18, a large shipment of illegal cigarettes worth 10.8 million rubles was seized in Kabardino-Balkaria. 80,000 packs of unlabeled cigarettes were found in the back of the car. The investigators opened a criminal case under clause "b" of Part 6 of Article 171.1 of the Criminal Code of the Russian Federation (production, purchase, storage, transportation or sale of goods without labeling).