Philip Morris settles smuggling claims for $1.25 bn
Philip Morris International has agreed a $1.25bn settlement with the European Union over accusations of collusion with cigarette smuggling.
The EU had said the company had evaded taxes and custom duties through its activities - a claim which the company continues to deny. The money to be paid will go towards the fight against smuggled tobacco over the coming decade.
The company, in common with other major tobacco firms, was said to have sent large quantities of cigarettes to countries with low excise duties in the knowledge that significant quantities would then be smuggled into higher duty areas of the EU. The EU has estimated that the illegal trade gives rise to an annual loss of more than 1bn Euros per year.