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I have been asked to reply on behalf of the Treasury.
The Government is fully committed to tackling the illicit trade in tobacco products and ensuring that smuggling does not undermine the health and revenue benefits of real increases in tobacco duties.
HM Revenue and Customs (HMRC) and Border Force have an established and effective strategy to tackle illicit trade, which has substantially reduced both the cigarette and hand-rolling tobacco illicit markets since the launch of the first Tackling Tobacco Smuggling Strategy in 2000. As a result, the mid-point estimate of the UK illicit market share for cigarettes has reduced from 21% to 9% and for hand-rolling tobacco from 61% to 38% by 2010-11.
HMRC continually adapts and develops its tobacco strategy to meet changing risks and threats. Through the 2010 spending review HMRC has invested a further £25 million to strengthen the strategy and maintain downward pressure on the illicit market through to 2014-15.