Smart History

Smoke and mirrors in Turkey with illicit cigarette trade

Hunched over a polystyrene crate with a cup of coffee perched on it, the man, at first glance, appears to be enjoying his refreshment while watching the bustle of market life. Then, someone approaches, the cup is swiftly removed and the lid lifted on the crate to reveal dozens of cigarette packs of various brands stuffed inside. An exchange of cash for tobacco takes place. This is Turkey’s illicit cigarette trade. The illegal transaction in Istanbul’s Fatih market district is common in a country where the government is estimated to have lost about US$9.5 billion in tax revenue from cigarette smuggling in the past five years. Demand for black-market cigarettes has ballooned since the prime mi... [Read more]

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