Hungary turns to black market for a smoke

Hungary turns to black market for a smoke
Revellers take part in New Year celebrations in Budapest January 1, 2014. Smoking is banned in public places in Hungary since 2009.

Hungary - In a parking lot in Nyiregyhaza, a Hungarian town near the Ukrainian border, Imre describes his black-market cigarette operation, whose business is booming thanks to a controversial government tobacco crackdown.

"We sell several hundred cartons per day," says the young man, who is using a fake name. His colleague "Janos" explains how the contraband merchandise crosses the Tisza river in small rafts.

"We don't even have to climb on board. We just pull the rafts from one shore to the other with ropes," he tells AFP.

"When they reach us, we sort them out and the cigarettes are sent to the four corners of the country."

Business has never been so good, he adds.

In July, the Hungarian government shut almost 90 per cent of the country's licensed cigarette vendors, squeezing the number to 5,300 from a previous 42,000.

The authorities said their crackdown was an effort to stop sales to minors and reduce smoking in the country of 10 million people, where about 46 per cent of men and 34 per cent of women light up.

But critics say it is a ploy to favour close allies of Prime Minister Viktor Orban's government with lucrative tobacco concessions.

Nora Ritok, head of the charity group Igazgyongy in northeastern Hungary, said she doubted the truth of official estimates that the number of smokers in Hungary has dropped by at least 200,000 in one year.

"Almost everyone smokes here," she said.

"Before, you could buy cigarettes everywhere, in every shop, in pubs. Now it's banned and there are many smaller villages where you won't find an (official) cigarette shop.... That's why the black market is developing."

How much the black market has grown is unclear. But cigarette seizures increased to 85 million in the first 10 months of 2013, compared with 68 million for all of 2012, according to the tax and customs authority (NAV).

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