German police have found over five million illegal cigarettes in a warehouse in Weert in Limburg and another two million in a van parked nearby, as part of an investigation into an illegal cigarette factory in Düsseldorf.

A haul of six million fake brand name cigarettes was discovered at the same warehouse just two years ago.

The 31-year old driver of the van was arrested but let go later, German police said.

The German police had set their sights on a factory in Düsseldorf, German media reported, where they impounded 32 million illegal cigarettes. From there the trail led to Weert.

The German authorities think the Düsseldorf factory, which had a complete production line, has produced tens of millions of cigarettes since the beginning of this year, depriving the German tax office of some €6 million in duty.

In July last year, customs officials seized eight million illegal cigarettes in Brabant which would have cost the treasury some €3.6 million.

While higher taxes on cigarettes are encouraging more people to stop smoking smuggling is also on the increase, according to research by the Dutch finance and health ministries, and more people are travelling abroad to buy cheaper tobacco.

Government research published in June last year showed that some 25% of empty cigarettes packets thrown away as litter originated abroad.

In total, tax income from tobacco has dropped €500 million below estimates, even less than was forecast at the presentation of the 2025 budget in September. A pack of 20 cigarettes now costs around €11 in the Netherlands, of which €7.80 is down to tax.

The reduced revenue prompted coalition party BBB to call for a reduction in tax.