Verband der deutschen Rauchtabakindustrie e.V. (VdR) is the German association of manufacturers and distributors of fine-cut, pipe, chewing and snuff tobacco, as well as importers of cigars and cigarillos. VdR represents over 60% of the German fine-cut market and nearly 100% of the domestic market for snuff and chewing tobacco.
An obvious correlation exists between the highest levels of illegal and non-domestic consumption (e.g. France, UK, Ireland, Poland and Finland) and the highest taxation rates applied to fine-cut toconsbacco, in comparison with cigarettes. The figures clearly show that any alignment of tobacco taxation, regardless of the products’ specificities, will prevent fine-cut tobacco from fulfilling its buffer function, leading to increased illegal trade of cigarettes and driving down government revenues.
Read more about the relationship between tax and illegal trade