Montenegro has made remarkable strides in the development of the tobacco product market and revenue over the past year, highlighting notable increases in cigarette traffic, smoking tobacco products, and excise duty revenues, as reported by the Ministry of Finance CG.

The ministry noted that the comprehensive efforts against illegal trade, along with strategic government initiatives, have contributed to a robust upward trend in the legal market, as stated in the mines report.

In September, the government made a decision to revoke the consent for the new tobacco plant in the free zone, a step that contrasts with the July 2021 decision that prohibited the storage of tobacco products in the Luka Bar free zone.

“Montenegro has made outstanding progress in the tobacco product market over the last five years, with estimates suggesting that the gray market has been reduced to approximately 20 percent, marking a notable decrease compared to previous years, primarily due to a significant reduction in illegal tobacco trade,” the statement read.

“Regarding the cigarette market, traffic has increased by 102 percent compared to 2020, translating to about 617 tons of cigarettes in the past year. Furthermore, compared to 2023, turnover saw a rise of around 94 tons, or 8.5 percent,” the ministry added.