Sales of tobacco and cigarettes in Cyprus, in contrast to other goods, increased sharply between March and April 2020, during the strict coronavirus quarantine. This is evidenced by the report of the Retail Zoom research group. One of the reasons is the closure of checkpoints with Northern Cyprus.

The growth in sales of bulk tobacco during the spring lockdown was 28%, cigarettes – 12%. The report shows that at the beginning of February sales of cigarettes amounted to 23 million euros, and at the end of May this figure rose to 28 million. Sales of loose tobacco during the same period rose from 3 to 4.5 million euros.

This trend is attributed to the government’s decision to close all North Cyprus checkpoints as a precautionary measure against the spread of coronavirus infection. This has forced many Cypriots, who used to travel north regularly to illegally buy tobacco and cigarettes there at a much lower price, to return to legally purchasing such goods at full price.

According to KPMG, illegal tobacco sales in Cyprus in 2019 amounted to 14.3 percent of the total – the highest rate ever registered in the country. As a result, the budget was underutilized by 28 million euros.