Serbia drinks 31.000 tons of coffee annually - Country looses one billion dinars for smuggling

Source: Novosti Monday, 11.04.2016. 14:05
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For coffee smuggling, country suffers damage of app. one billion pounds when you add unpaid excise and related taxes, which is equivalent to more than 375,000 monthly child allowances - Sinisa Danicic, CEO of Strauss Adriatic says.

He explains that coffee consumption has not been decreasing despite the fact that data indicate coffee import has dropped significantly, reflecting gray economy on raw coffee import to our country.

- According to information we have, raw coffee import has fallen by 20%, so that every fifth cup of traditional coffee is smuggled to Serbia – Danicic said.

Head of the company which manages one of the most recognizable brands of favorite drink - "Don" and "C kafa" says that gradual abolition of excise for coffee import would automatically make raw coffee smuggling less attractive, and it would, in mid-term, provide the country with higher incomes for taxes which legal importers would pay and certainly for higher coffee and coffee products turnover.

Danicic says that Serbian coffee market annually consumes 31,000 tons, but when it comes to money, market value totals EUR 200 m.

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