Country-Level Industry Data

Major tobacco companies, such BAT and PMI, have been active in smuggling tobacco in the United
Kingdom, China, Lebanon and many African countries including, South Africa, Nigeria, Ghana, Senegal,
and Mali.i

The tobacco industry systematically exaggerates the level of illicit trade to discourage/argue against
tobacco control measures, especially tax. In Mexico, an independent study by National Institute of Public
Health in 2019 found that the size of the illicit trade market was 8.8%, almost half of what the tobacco
industry claims (17%).ii

The UK’s Trading Standards Institute found that in 2014 and 2015-16, 70% of illicit cigarettes were
“tobacco industry illicits”.iii

BAT transferred US$54.7 million in profits out of Indonesia between 2013-2015, depriving the govt. of
US$11 million in taxes.iv

BAT transferred US$78.3 million in profits out of Brazil between 2009-2011, depriving the govt. of US$27
million in taxes and transferred US$ 31.9 million between 2007-2014, depriving the govt. of US$6 million
in taxes.v

"In Bangladesh, for every dollar of income tax that the govt. recieved from BAT, it lost $24 from the
economic costs of smoking."vi

In 2012, tobacco costs the world over 1.4 trillion USD each year in health care costs and lost
productivity, equivalent in magnitude to1.8% of global GDP.vii
In 2012, tobacco costs the world over 1.4 trillion USD each year in health care costs and lost productivity,
equivalent in magnitude to1.8% of global GDP. At the country-level this includes, Ukraine PPP$12.5 billion
in total economic costs, Brazil PPP$ 48.1 billion in total economic costs, Bangladesh PPP$6.4 billion in
total economic costs, in India PPP$ 114 billion in total economic costs, in Indonesia PPP$ 172.8 billion, in
the Philippines PPP$15.1 billion.viii

In China, internal BAT documents reveals that the company was actively involved in smuggling its
products for over two decades, which was considered integral to their business operations.ix

In South Africa, it was estimated that cigarette manufacturers flooded the market with up to 12 billion
illicit cigarette sticks annually.x

In Colombia, the tobacco industry estimated that the size of the illicit tobacco market was 18%, however
independent estimates found it was 6.4% even after a significant tobacco tax increase.1

1
Maldonado N, Llorente B, Escobar D, et al. Smoke signals: monitoring illicit cigarettes and smoking behaviour in
Colombia to support tobacco taxes. Tobacco Control, 2019.
In 2015-16, BAT transferred US$26.5 million in dividends from Kenya to the Netherlands, allowing BAT
to avoid paying US$2.7 million in taxes to the Kenyan government.xi

The economic costs of smoking cost in Bangladesh was BDT 305.6 billion (USD 3.6 billion) in 2017-18,
which is equivalent to 1.4% of the country's GDP.xii

In Indonesia, tobacco farming makes up about 0.30% of the agricultural sector.xiii

Tobacco farming is a low wage occupation. In Indonesia, former tobacco farmers ($3,797.68) ) have
higher annual incomes on average than current tobacco farmers ($2,921.19).xiv

In India, the bidi manufacturing sector makes up 0.65% of the gross value added of India's
manufacturing sector.xv

ii
Public Accounts Committee. Twenty-Third report: HM Revenue and Customs- Progress in tackling tobacco
smuggling. 2013 Oct.; Lee K, Collin J. “Key to the future”: British American Tobacco and cigarette smuggling in
China. PLoS Med. 2006;3:e228. ; LeGresley E, Lee K, Muggli ME, Patel P, Collin J, Hurt RD. British American Tobacco
and the “insidious impact of illicit trade” in cigarettes across Africa. Tob Control. 2008;17:339-46. ; Nakkash R, Lee
K. Smuggling as the “key to a combined market”: British American Tobacco in Lebanon. Tob Control. 2008;17:324-
31. ;
ii
Sáenz de Miera Juárez B, Reynales Shigematsu LM. El consumo de cigarros ilícitos en México. Una estimación
robusta y transparente para apoyar la toma de decisiones. Atlanta: American Cancer Society, 2019.
iii
World Bank. Confronting Illicit Tobacco Trade: a Global Review of Country Experiences (English). WBG Global
Tobacco Control Program. Washington, D.C. : World Bank Group, 2019.
iv
Tax Justice Network. Ashes to Ashes How British American Tobacco avoids taxes in low and middle income
countries. April 2019.
v
sumo de cigarros ilícitos en México. Una estimación robusta y transparente
vi
Tax Justice Network. Ashes to Ashes How British American Tobacco avoids taxes in low and middle income
countries. April 2019.
vii
Goodchild M, Nargis N, Tursan d'Espaignet E. Global economic cost of smoking-attributable diseases.Tobacco
Control 2018;27:58-64
viii
Goodchild M, Nargis N, Tursan d'Espaignet E. Global economic cost of smoking-attributable diseases.Tobacco
Control 2018;27:58-64
ix
Lee K, Collin J. “Key to the future”: British American Tobacco and cigarette smuggling in China. PLoS Med.
2006;3:e228.
x
Cohen T. SARS pencils in an extra R10bn in tobacco excise revenue after clamping down on illicit industry. The
Daily Maverick, 1 May 2019. Available at https://www.dailymaverick.co.za/article/2019-05-01-sars-pencils-in-an-
extra-r10bn-in-tobacco-exciserevenue- after-clamping-down-on-illicit-industry/.
xi
Ashes to Ashes: How British American Tobacco avoids taxes in low and middle income countries. Tax Justice
Network, 2019. Available at: https://www.taxjustice.net/wp-content/uploads/2019/04/Ashes-to-ashes_How-
British-American-Tobacco-Avoids-Tax-in-Low-and-Middle-Income-Countries_Tax-Justice-Network_2019.pdf
xii
Faruque GM, Wadood SN, Ahmed M, Parven R, Huq I, Chowdhury SR. The economic cost of tobacco use in
Bangladesh: A health cost approach. Bangladesh Cancer Society. February 23, 2019.
xiii
Drope, Jeffrey; Li, Qing; Araujo, Edson Correia; Harimurti, Pandu; Sahadewo, Gumilang Aryo; Nargis, Nigar;
Durazo, Josefine; Witoelar, Firman; Sikoki, Bondan Supraptilah. 2017. The economics of tobacco farming in
Indonesia (English). WBG Global Tobacco Control Program. Washington, D.C. : World Bank Group.
http://documents.worldbank.org/curated/en/161981507529328872/The-economics-of-tobacco-farming-in-
Indonesia
xiv
Drope, Jeffrey; Li, Qing; Araujo, Edson Correia; Harimurti, Pandu; Sahadewo, Gumilang Aryo; Nargis, Nigar;
Durazo, Josefine; Witoelar, Firman; Sikoki, Bondan Supraptilah. 2017. The economics of tobacco farming in
Indonesia (English). WBG Global Tobacco Control Program. Washington, D.C. : World Bank Group.
http://documents.worldbank.org/curated/en/161981507529328872/The-economics-of-tobacco-farming-in-
Indonesia
xv
Bidi Industry in India: Output, Employment, and Wages. Public Health Foundation of India, 2017.