The Association of Convenience Stores (ACS) has called for tougher enforcement against the illicit tobacco trade.
In a submission to a HM Revenue and Customs consultation on the issue, the ACS highlighted 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.
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. According to government estimates, the tobacco tax gap (tax income lost in unpaid duty and VAT) was £2.5bn in 2020-21.
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.”
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