Finance Minister Novica Vuković announced that the tobacco trade in the gray market has been reduced to approximately 20 percent.

He noted that this figure indicates a significant decline compared to previous years, primarily due to a considerable decrease in illegal tobacco product trade.

Vuković made these remarks during a visit by British Minister for Europe Stephen Dawty to the Customs Office in the Free Zone of “Port of Bar,” alongside Acting Director of the Customs Administration Maja Vučinić and Deputy Prime Minister Momo Koprivica.

The meeting underscored the importance of collaborative efforts between the Customs Administration of Montenegro and British Government bodies, focusing on key issues such as combating tobacco smuggling.

Vučinić expressed her sincere gratitude to the UK Revenue and Customs (HMRC) for their support to the Government of Montenegro and the customs service, particularly in the Coordination Body for the Inventory of Cigarettes in the Free Zone “Port of Bar,” as well as in preparation for amendments to the Law on Free Zones.

She also highlighted the significant contribution of British experts in crafting the Comparative Analysis of Economic Incentives and Governance Models in European Free Economic Zones, along with their ongoing efforts to strengthen regional cooperation.

Moreover, she recognized the crucial role of the British Home Office’s International Operations Department, which facilitated specialized training for customs officers and donated control equipment.

Koprivica emphasized that the Government of Montenegro is firmly dedicated to combating all forms of corruption and smuggling. He indicated that they are focusing on adopting a new Law on Free Zones, aligned with top European standards, supported by a working group which will incorporate modern technology to eliminate opportunities for abuse.

He also highlighted the exceptional significance of the activities undertaken by the Special State Prosecutor’s Office, noting that their results in this area are outstanding, and reiterated the Government’s commitment to supporting their impartial and professional work.

Vuković, who oversees the Customs Administration, conveyed pride in the progress made in regulating the tobacco products market and the revenue growth in this sector throughout 2024.

“As the finance minister of Montenegro, I can affirm that the remarkable increase in the sales of cigarettes and smokeless tobacco products, as well as excise revenue, stems from our comprehensive fight against illegal trade and strategic government measures. These efforts have resulted in a strong upward trend in the legal market. The introduction of a new excise calendar, along with the Government’s emphasis on this sector, is expected to create an even more regulated tobacco market and increase revenue in 2025. During Minister Dauti’s visit, the significance of collaboration in combating illegal trade and enhancing customs capabilities was repeatedly stressed,” the statement read.

“The visit from a senior UK government official is a reinforcement of the long-standing partnership between our two nations and serves as an encouragement for further cooperation and the advancement of European standards in customs and security procedures. The joint tour of the zone where tobacco was stored by Montenegrin and British officials symbolizes the principal goal of our partnership: to achieve greater efficiency in control and improved transparency in operations,” it concludes.

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