I don't understand - yes there is smuggling, but on a small as I indicated. In Western Europe (the area I restricted myself to in my post) most of the fraudulent import comes from Eastern Europe and Russia, so yes they are bought legally there and then imported. Likewise, a fair number of people drive to Luxembourg where the tax rates are lower.
I take it that you mean that (Native American or Aboriginal?) reservations have autonomy when it comes to taxation and that they leverage that to attract tobacco customers from outside the reservation. Which makes sense, but I'm hard pressed to believe that it's a significant amount of total consumption. My back-of-the-envelope calculations (based on estimates of the World Bank and 40% of the EU population smoking 10 cigarettes a day) say that in the EU on less than 10% of all cigarettes smoked, no taxes have been paid. Which is not that much.
Of course if you have numbers that show that in the case you indicate the percentages are different I'd be interested to learn.
I take it that you mean that (Native American or Aboriginal?) reservations have autonomy when it comes to taxation and that they leverage that to attract tobacco customers from outside the reservation. Which makes sense, but I'm hard pressed to believe that it's a significant amount of total consumption. My back-of-the-envelope calculations (based on estimates of the World Bank and 40% of the EU population smoking 10 cigarettes a day) say that in the EU on less than 10% of all cigarettes smoked, no taxes have been paid. Which is not that much.
Of course if you have numbers that show that in the case you indicate the percentages are different I'd be interested to learn.