HMRC plans tough action to tackle illegal tobacco trade

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HMRC has outlined proposed new actions to tackle tobacco duty evasion, highlighting the impact that the illicit trade has on legitimate retailers.

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The 12-week consultation, published today (1 December), is considering a range of measures to tackle the illicit tobacco trade, including:

  • Extending the ability to enforce selected track and trace sanctions to trading standards.
  • A new penalty of up to £10,000 for holding or possessing products that do not comply with the track and trace requirements.
  • Power to seize any track and trace compliant tobacco products where they are found alongside product that does not comply with the track and trace requirements.
  • The withdrawal of the track and trace operator ID from those retailers who are found with products that do not comply with the track and trace requirements.
  • The withdrawal of the track and trace operator ID from retailers that have had their ability to sell tobacco restricted or curtailed under any other legislation.

ACS chief executive, James Lowman, said: “The illicit tobacco market damages legitimate retailers and is dangerous for consumers. We have long called for tough action against the illicit trade, and welcome this consultation which aims to ensure that those selling illicit tobacco are stopped from doing so. We will also be working to advise our members to make sure that they do not unwittingly fall foul of the tough enforcement measures we need.”

ACS says it will be responding to the consultation in due course.