ACS (the Association of Convenience Stores) has responded to the publication of a report from HM Revenue and Customs on the prevalence of non-duty paid alcohol and illicit tobacco in the UK, calling for tougher enforcement and continued focus on tackling the illicit trade.
According to HM Revenue and Customs, the tobacco tax gap driven by the illicit market in cigarettes and hand-rolling tobacco is estimated to be £2.8 billion in 2021-22. Of this, £2.2 billion was lost in tobacco duties and a further £0.6 billion in VAT.
The alcohol tax gap including beer, wine and spirits is estimated to be £1.37 billion (duty and VAT combined) for 2021-22.
ACS chief executive James Lowman said: “It is important to recognise that although the tax gap is considered to be low, the sale of illicit or non-duty paid alcohol or tobacco has a detrimental impact on the economy, the safety of our communities and is extremely damaging to responsible retailers who operate on the right side of the law.
“We are urging the HMRC and Trading Standards to ensure that the focus remains on tackling the sale of non-duty and illicit products and to work closely on enforcing proportionate penalties to disrupt illicit supply chains.”
There are new penalties coming in effect on 20th July which have been developed to tackle illicit traders. The measures include fines of up to £10,000 for persistent offenders found to be selling large quantities of illicit tobacco and the removal of track and trace codes (economic operator ID) for severe cases of non-compliance.
The HMRC report is available here.
