A new report estimates that governments across the EU lose up to €15 billion a year due to the sale of counterfeit goods.
The European Union Intellectual Property Office report says the loss of income is as a result of reduced direct and indirect taxes, as well as social contributions, which are not paid by illegal manufacturers.
Up to €19 billion of sales are lost every year in the EU by the cosmetics and personal care sector, the wine and spirits sector, the pharmaceutical sector and the toys and games sector due to counterfeiting, according to the EUIPO.
Counterfeit goods do not undergo the same stringent testing as genuine goods to make sure they are safe for people to consume or use.
EUIPO noted that lost sales in the cosmetics and personal care sector have increased by over €2.5 billion since the last such analysis was published last year - the highest increase across the sectors studied.
Approximately 14.1% of the cosmetic and personal care sector's sales (€9.6 billion) is lost annually across the EU due to the presence of counterfeit products. In Ireland that figure stands at 18.5%.
Research carried out by the EUIPO and Europol also reveals the links between counterfeiting and other serious crimes.
Since 2016, enforcers across the EU have carried out 29 major anti-counterfeiting and piracy operations, targeting organised gangs which were also involved in other serious crimes, including drug trafficking and money laundering.
