Tobacco Tax Gaps: Small Rise Shows Need for New Government Action

Official figures released today show that the level of tobacco smuggling in the UK in 2013/14 has risen slightly since last year. According to HM Revenue & Customs, in 2013/14 an estimated 10% of cigarettes consumed in the UK were illicit compared to 9% in 2012/13. The figures for hand rolled tobacco were 39% in 2013/14 compared to 36% in 2012/13 (all figures mid-range estimates).

The figures show the need for the Government to act on recommendations on tobacco smuggling from the National Audit Office and the House of Commons Public Accounts Committee. The PAC reported that “HMRC has not yet found the right balance in its enforcement action, which can range from prosecutions of organised criminal gangs to imposing fines or referring offenders to licensing authorities for those involved in local, small-scale operations”. The House of Commons Home Affairs Select Committee has also sharply criticised the Government and enforcement authorities for failing to prosecute any of the major tobacco firms in cases where they have over-supplied tobacco to particular countries with low tobacco taxes, knowing that it will be smuggled back into the UK.

 

http://www.ash.org.uk/media-room/press-releases/:tobacco-tax-gaps-small-rise-shows-need-for-new-government-action