Belgian raid uncovers massive counterfeit cigarette factory amid EU tobacco tax push

A large-scale counterfeit cigarette operation was uncovered in Ninove, East Flanders, where up to 1.3 million illegal cigarettes were produced daily. The raid on September 9 involved 62 officers, 45 of them from customs, who seized industrial equipment, tobacco, filters and fake packs of Marlboro, Prince and Richmond, and arrested eleven workers - four from Poland and seven from Ukraine, some residing on site. This is the twelfth such factory dismantled by Belgian customs in 2025, equalling the previous annual high set in 2024.

The discovery comes as the European Commission seeks to tighten the Tobacco Taxation Directive, aiming to raise minimum taxes and extend them to e-cigarettes, heated tobacco and nicotine pouches, but the proposal has been rejected by the European Parliament and lacks unanimity in the Council. The European Court of Auditors warns that nearly one in ten cigarettes on the EU market is illicit, costing an estimated €13 billion in lost tax revenue, and highlights fragmented enforcement across member states. Belgium’s role as a logistics hub near high-tax markets like France and the United Kingdom makes it attractive for illicit trade, with price gaps between legal packs (€11-€13) and illegal ones (€4) fueling profit margins.