Snus is a type of smokeless tobacco. Smokeless does not mean harmless. However, since the use of the product does not involve inhalation, it is associated with
significantly less health risks than cigarettes. Due to the unique way it is manufactured, it is also recognised as posing a lower risk
than most other smokeless tobacco products. Evidence from Sweden, where snus use is common, shows it can reduce smoking rates by both offering a real alternative to starting
smoking and helping smokers quit. Consequently, snus use is considered by some members of the public health community as being one of the main
contributory factors to the record low smoking related mortality seen in Sweden. Snus however is currently banned in the EU.
Illicit cigarette trade has become a major problem for many European economies. A 2005 study commissioned by the European Commission estimated that in
2004 the illicit cigarette trade in the EU 25 represented approximately 8% to 9% of the tobacco market with estimated tax loss between € 8.1 billion and € 9.15 billion.
The case of Hungary is illustrative of the scope of this problem.