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New EU Tobacco Tax Rules Trigger Market Stability Concerns

by THEFUTURE.TEAM

February 16, 2026

Amid an ongoing European consultation on taxation policies, the Association of Convenience Stores (SYKADE), a member of the Cyprus Chamber of Commerce and Industry, held a high-level meeting with the Director of the Customs Department to assess the potential consequences of proposed EU tax revisions on tobacco and nicotine products. The dialogue focused on how pricing shifts could affect both legal retailers and overall market equilibrium.

Price Projections And Consumer Impact

Industry representatives warned that if higher minimum excise duties are introduced, the average retail price of a cigarette pack could rise from approximately €4.50–€5.00 to €7.00–€7.50. Such an increase, they argue, would not only reduce affordability but could also redirect a portion of demand away from regulated sales channels, reshaping purchasing behaviour across the legal tobacco market.

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Smuggling And Revenue Losses

A central concern in the discussion was the persistent issue of illicit trade. SYKADE emphasized the importance of strengthening border inspections and upgrading customs monitoring systems, alongside introducing stricter penalties for trafficking offenses. According to industry estimates, illegal cigarettes account for roughly 13% of total consumption, while hand-rolled tobacco products may reach levels of up to 53%. These parallel markets are believed to deprive public finances of more than €50 million annually in lost tax revenue.

Balanced Taxation And Policy Outlook

While expressing support for public-health initiatives aimed at reducing smoking rates, the association urged policymakers to adopt a data-driven and proportionate fiscal strategy. SYKADE cautioned that excessively sharp tax increases risk expanding the shadow market and undermining legitimate businesses without delivering the intended health outcomes. The organization confirmed that further consultations with the Ministry of Finance are planned, with the goal of aligning revenue protection, consumer regulation, and public-health priorities within a stable and predictable policy framework.

The Future Forbes Realty Global Properties

Greek Retail Powerhouse Expands Into Six Strategic International Markets

Greek retail titan Jumbo has announced an ambitious expansion strategy that positions the company to extend its international footprint beyond its established strongholds in Cyprus and Southeast Europe. In a strategic agreement with the Balfin Group, the retailer is set to penetrate six new markets, including Ukraine, Georgia, Armenia, Azerbaijan, Kazakhstan, and Uzbekistan.

Strategic Global Expansion

The agreement builds on the existing cooperation between Jumbo and Balfin Group, which previously supported the retailer’s expansion into markets including Albania, Kosovo, Bosnia and Herzegovina, Montenegro and Moldova. According to the company, the next phase of expansion will include a greater degree of local operational management across the new markets.

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Enhanced Logistics And Supply Chain Capabilities

To support the expanded international network, Balfin Group is also developing a new central logistics hub in China. The facility is expected to strengthen sourcing, warehousing, transportation and distribution operations across the Caucasus region, Central Asia and Ukraine. Previously, Jumbo relied primarily on logistics infrastructure based in Greece to support franchise operations across Southeast Europe.

Sustainable Growth And Robust Financial Foundation

Alongside its franchise expansion strategy, Jumbo continues focusing on organic growth across existing markets. The retailer currently operates 89 physical stores, including 53 in Greece, six in Cyprus, 10 in Bulgaria and 20 in Romania, in addition to its e-commerce operations. A new store in Baia Mare is expected to open by the end of October.

Jumbo also operates 46 franchise stores across seven countries, including Albania, Kosovo, Serbia, North Macedonia, Bosnia and Herzegovina, Montenegro and Israel. According to the company, its expansion strategy continues to be supported by strong liquidity levels and the absence of bank borrowing.