Romania Set To Limit Sale Of Cigarettes, Alcoholic Drinks In Duty-Free Shops - Sources

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Sources also said the government discussed in its meeting Friday, among others, the issue of contraband cigarettes and alcoholic drinks sold in duty-free shops.

They added competent ministries would start drafting the acts needed to crack down on illicit trade involving these products.

Interior Minister Vasile Blaga said Monday he proposed to the government that cigarettes and alcoholic drinks would no longer be sold in duty-free shops, in a bid to fight illicit trade.

Blaga also said Monday, during the activity report meeting of the Romanian Border Police, that contraband cigarettes remain a major challenge for the Romanian border police staff, arguing, however, that banning the sale of cigarettes and alcoholic drinks in duty-free shops does not necessarily solve the problem.

The minister also stressed large amounts of contraband cigarettes reach the European Union member states, which, he added, endangers Romania's membership to the European Union and the country's plans to join the Schengen Area.

In November 2009, Romania said it plans to discard tax incentives it granted to duty-free shops, which are exempt from customs duties, to stop issuing authorizations for new shops and raise the current EUR10,000 permit fee to a level that should discourage illicit trade.

In December 2009, the Romanian Government said it plans to limit the quantity of tobacco and alcohol that can be purchased for personal consumption by a single individual in duty-free stores, in a bid to reduce tax evasion and increase budget revenue.