Mongolia: Tobacco Tax didn’t Enhance Illicit Cigarette Commerce 


In Could 2017, the Mongolian authorities had elevated the import tobacco tax by 30%, adopted by a 10% excise tobacco tax enhance in January 2018. Studies from across the globe have indicated {that a} rise in tobacco tax tends to extend the speed of illicit commerce. The research titled, “Impression of tax will increase on illicit cigarette commerce in Mongolia,” aimed to discover whether or not this was the case in Mongolia.

Opposite to world developments the tax enhance in Mongolia appeared to result in a lower in illicit commerce. 

The researchers collected discarded cigarette packs within the capital metropolis and in two provinces close to China, the Russian Federation and Kazakhstan. Tax will increase had occurred between all three rounds and illicit cigarette packs have been recognized in the event that they both had no excise tax stamp, and/or no traces of a tax stamp.


Within the first spherical, 15.4% of the collected packs have been discovered illicit, within the second spherical the quantity had decreased to 13.6% while within the third spherical Three it had decreased additional to six.3%. Contraband cigarettes have been discovered to originate primarily from the Republic of Korea and Ukraine, however some have been manufactured in Mongolia. 

The compiled information indicated that opposite to worldwide studies, the tax enhance in Mongolia didn’t result in a rise in illicit tobacco commerce however fairly the opposite, this appeared to lower with each spherical. 

Illicit commerce on the rise in Ontario

In the meantime, one other latest research carried out in Ontario, suggested that smoking contraband cigarettes rose from 25% in 2016, to 31% this yr. Consistent with the figures obtained by this analysis, one other research revealed earlier this yr reported related findings, indicating that 32% of individuals in Ontario reported shopping for contraband cigarettes, with the most important proportion of them present in northern Ontario.


PMI Claims That it Fights Illicit Tobacco Commerce In Order to Fight Smoking


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