retailers identified selling illegal tobacco in 2024
social media take-down notices issues since 2022
JTI UK continues to work with law enforcement agencies and retailers across the UK to fight the trade in illegal tobacco products in order to reduce the revenue losses experienced by retailers, distributors, Government and ourselves.
Tobacco products continue to be one of the world’s most smuggled commodities and the demand for them creates a massive source of income for criminals. While there are many factors that have created this situation in the UK, the principal one is the high taxation policy of successive governments. Since the start of 2023, the duty on hand-rolling tobacco has increase by 60%.
Illicit tobacco trade undercuts law-abiding businesses. It funds other organised crime with its proceeds and increases the burden on honest taxpayers.
The most recent figures from the UK government, covering the fiscal year 2022/23, show that criminal activity accounted for 7% of the cigarette and 33% of hand-rolling tobacco consumption, leading to a tax revenue loss of £2.2 billion. We believe this is an understatement. HM Revenue & Customs estimate that since 2010 the total tax revenue loss is £26.5 billion. This is money that could’ve be used to fund vital public services[1].
[1]Measuring tax gaps 2024 edition: tax gap estimates for 2022 to 2023. HMRC, June 2024
As well as supporting law enforcement agencies, we work to raise awareness of problems caused by the illegal trade with retailers and consumers. The public and retailers are the ‘eyes and ears’ of the fight against illegal tobacco and need to report the criminals breaking the law.
If you’re aware of anybody selling illegal tobacco you should contact HM Revenue & Customs’ Fraud Hotline on 0800 788 887, Trading Standards (through the Citizens Advice consumer helpline) on 0808 223 1133 or Crimestoppers on 0800 555 111.
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