Tobacco smugglers blamed for corner shop woes

LOST sales from tobacco smuggling and cross-border shopping has left one in 10 corner shops under threat of closure, a survey revealed.

The Tobacco Retailers' Alliance says its research found 10% of independent retailers were considering shutting their business because of the effect of the cut-price trade.

Around two in five corner shop owners (38%) have considered reducing their staff as smugglers cash in on higher levels of tax on tobacco in the UK.

The Government should allow tax levels in member countries to "catch up" so that the UK is not a target, according to the alliance, which represents 26,000 independent tobacco sellers.

Scottish spokesman Geoff Barrett, a shopkeeper in Glasgow, said: "These results show that tobacco smuggling is not only a threat to the livelihoods of independent retailers but one that continues to worsen.

"The high levels of tax on tobacco mean a smuggler, selling at half the price I charge, will make more money selling his tobacco here than almost anywhere else in the EU."

The Economic Research Survey of 895 UK retailers, including 92 in Scotland, was carried out by post back in February.

Scotland was the first part of the UK to introduce a public smoking ban in 2006, and a ban on the display of cigarettes in large shops came into effect on 29 April this year.

Self-service tobacco vending machines have also been banned, while smaller retailers have until 6 April, 2015, to comply with the new laws.

Plain cigarette packaging is to be introduced in Scotland under a plan to make the nation "tobacco free" by 2034. The government has said it wants to see less than 5% of the population choosing to smoke by that date.