ACS (the Association of Convenience Stores) has responded to a HM Revenue and Customs consultation on tougher sanctions to tackle illicit tobacco, welcoming measures that could reduce the impact of the illicit trade on both retailers and consumers.
HMRC is considering the introduction of fines for up to £10,000 for persistent offenders selling large quantities of illicit tobacco, and the six-month removal of track and trace codes (economic operator ID) for severe cases of non-compliance.
In the submission, ACS highlights the lack of previous meaningful enforcement action when it comes to dealing with businesses that were found to be selling illicit tobacco, with almost half of businesses in 2019 (48%) receiving a verbal warning. ACS has called for a low tolerance approach to send a clear message that selling these products is not acceptable.
ACS chief executive James Lowman said: “We strongly welcome any measures aimed at tackling the dangerous illicit market which harms both consumers and responsible retailers. If introduced, these tougher sanctions must be backed up with proper local enforcement to get these products off shelves and deter others from purchasing them from criminal gangs.”
The Government estimates that the tobacco tax gap (tax income lost in unpaid duty and VAT) was £2.5bn in 2020-21.
ACS’ submission is available here.
ACS’ Assured Advice guide on selling tobacco is available here: https://www.acs.org.uk/advice/selling-tobacco
