# Industry warns illicit tobacco accounts for nearly half of Cambodia’s market

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Source: <https://www.kps-tv.com/en/news/detail/3342>

Language: en

Content scope: full

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Original publication: 2025-11-24T08:40:40Z

Industry experts warn that illicit tobacco lacking tax stamps and health warnings makes up nearly half of Cambodia's market and costs more than US$38 million annually in lost taxes.

Cambodia’s expanding illicit tobacco market has drawn concern from industry and government. Industry experts cited in the report warn that nearly half of tobacco products on the domestic market lack tax stamps and health warnings. They estimate annual tax losses of more than US$38 million, alongside pressure on legitimate businesses. They described the problem as serious enough to affect national interests.
Industry estimates put the illicit share at about 50 percent, second only to Malaysia at about 60 percent in the comparison cited. The figures are based mainly on analysis of discarded cigarette packs collected nationwide. Experts say low prices, untaxed sales and missing health warnings help illicit products circulate widely and undermine legitimate tobacco companies. Industry representatives said US$38 million could build 90 provincial health centres or 200 kilometres of concrete roads, adding that actual losses could be higher.
The industry also warns of wider consequences, including more smoking among minors, expanding black-market networks and potential security risks. Some experts cited Australia as an example where high taxes had encouraged illicit tobacco groups, violence and youth involvement in gangs, and urged Cambodia to remain alert to such risks.
Industry representatives urged stronger regulation, cooperation among agencies and action against illegal production and smuggling. They said legitimate companies face strict regulation and advertising bans, putting them at a disadvantage against illicit operators. Cambodian authorities seized and destroyed 70 tonnes of counterfeit tobacco products last year, according to the report. The industry hopes coordinated enforcement and market oversight can curb illicit sales and protect public health and government revenue.
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