The illicit trade in tobacco products continues to represent a challenge for institutions, businesses and communities. In addition to depriving public finances of resources, it fuels criminal networks, undermines the competitiveness of compliant operators and weakens the sustainability of a supply chain involving thousands of people across Italy.
For this reason, JTI supports an approach based on collaboration between institutions, competent authorities and the private sector, based on the belief that combating illegal activity requires effective tools, traceability and a clear and predictable regulatory framework.
Illicit tobacco products fall into three main categories. Smuggling concerns genuine products that are diverted from the legal distribution network and sold without payment of the applicable taxes. Counterfeiting, on the other hand, involves the production and sale of products that illegally use registered trademarks and do not comply with the quality and safety standards required in the legal market. Finally, illicit whites are products legally manufactured in certain countries but intentionally destined to be introduced illegally into other markets.
According to Logista’s 2026 Report on the distribution of smoking and non-smoking products, illicit trade in Italy is currently worth approximately €1.2 billion and results in an estimated loss of around €690 million in tax revenue. This phenomenon has significant economic consequences, but it also affects legality and the sustainability of the sector as a whole.
For years, JTI has worked alongside the authorities involved in combating this phenomenon, collaborating with the Italian law enforcement agencies, the Customs and Monopolies Agency and the European Anti-Fraud Office (OLAF). The company also supports training activities for professionals involved in combating counterfeiting and shares information useful for monitoring and enforcement activities.
JTI believes that combating illicit trade also requires a balanced regulatory and tax framework capable of supporting the competitiveness of the legal market, encouraging investment and reducing the incentives that fuel illegal channels. From this perspective, dialogue between institutions and industry players is essential to ensuring legality, consumer protection and the long-term sustainability of the supply chain.