U.K. GOVERNMENT LAUNCHES TOBACCO SMUGGLING INQUIRY
U.K. retailers are applauding a government probe into tobacco
smuggling, The Grocer reports. The Home Affairs Committee is starting an
investigation into how the country should be doing to stop the sale and import
of contraband tobacco. Contraband tobacco sales cost the United Kingdom an
estimated £2 billon each year.
“The U.K. has one of the highest rates of tobacco duty in the
EU, which makes it one of the most lucrative markets for smugglers. The role of
Border Force is therefore vital in reducing the supply of illicit tobacco. We
will be looking at the scale of the problem and what more can be done to tackle
it,” said Keith Vaz MP, who chairs the committee.
Part of the investigation will center on the reasons behind a
drop over the past three years in the number of arrests, prosecutions and
convictions for smuggling tobacco. The committee will also look into why the
Border Force missed its own goals for seizing illegal tobacco in 2012/2013 and
how Ireland’s plain packaging regulations would impact contraband tobacco in
the United Kingdom. Ireland is experiencing its own uptick in tobacco
smuggling.
“It is not good enough that the government has missed its own
targets for reducing tobacco smuggling this year,” said James Lowman, CEO of
the Association of Convenience Stores. “It is time for a rethink about the
resources available to police and trading standards in prioritizing the
detection and closing down the criminal operations that blight our communities
and damage the livelihoods of legitimate retailers.”
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