Despite improving the situation, tobacco fraud remains a serious problem with HMRC estimating that in 2015-16, 5 billion 
illicit cigarettes and 3,200 tonnes of illicit hand-rolling tobacco were consumed in the UK.
Such fraud is dominated globally by organised criminals and the illicit trade damages legitimate business, undermines public health and facilitates the supply of tobacco to young people. HMRC estimates that in 2015-16, five billion smuggled cigarettes and 3,200 tonnes of hand-rolling tobacco were consumed in the UK.
The HMRC consultation is about proposed changes to, or new sanctions which focus in particular on repeat offenders.
The consultation is seeking views on four potential additional sanctions which are:
- an increase in financial penalties of up to 400% of duty evaded
- a new civil penalty for those involved in flouting fiscal marks
- a lower threshold for publicly naming the organised crime gangs and businesses who evade tobacco duty
- a new duty of care on landowners and landlords to prevent their properties being repeatedly used for tobacco fraud – for example, to store, produce or sell illicit tobacco.
HMRC already works with the Border Force and other agencies to catch smugglers and has enjoyed some success in increasing public awareness of potential sanctions, including imprisonment, for the smuggling of tobacco. More than 3.5 billion illicit cigarettes, and around 600 tonnes of hand-rolling tobacco was seized in the last two years.
The government would welcome views on the proposed sanctions and whether these could potentially help tackle evasion of tobacco duty and other excise duties. If you’d like to know more or respond to the consultation visit the .Gov.uk website.
