ACS has responded to new data from HM Revenue and Customs on the prevalence of non-duty paid and illicit products in the UK, reiterating its calls for action to stop rogue traders.

Figures published today (23rd June) show that the tax gap (duty and VAT combined) driven by illicit cigarettes and tobacco stands at £1.3bn in 2024 to 2025, with the alcohol tax gap sitting at £0.8bn. There are no official estimates from HM Revenue and Customs of the VAT lost on vaping products, although a due on vaping products will be introduced in October this year.

Research conducted for ACS in 2024 showed that Trading Standards teams would need at least £140m over the next five years to deal with illicit vapes alone.

ACS chief executive Ed Woodall said: "Rogue traders continue to cost the Government billions in lost revenue every year, with responsible retailers suffering through major losses in trade. It is essential that the Government provides Trading Standards with the tools that it needs to enforce against the illicit trade at a local level."

Earlier this month, ACS launched its Stop Rogue Traders campaign, highlighting ways that retailers can report illicit activity in their area and outlining the scale of the problem facing the Government. The campaign hub can be found here.

Retailers can also check ACS’ Assured Advice guides which cover all aspects of regulatory compliance for convenience retailing, to ensure that they are doing their part to comply with government standards and regulations.

The full HMRC report is available here.