§ Lord Shore of Stepneyasked Her Majesty's Government:
What is their estimate of the loss of tax revenues in each year since 1992 from the purchase of (a) tobacco products and (b) alcoholic beverages by United Kingdom travellers or visitors in Belgium and France who claim on their return to the United Kingdom that the goods purchased are for their personal consumption. [HL2674]
§ Lord McIntosh of HaringeyHM Customs and Excise estimates of the revenue lost to the Exchequer (excise duties and VAT) through legitimate cross-border28WA shopping and cross-Channel smuggling in tobacco products and alcoholic drinks are set out in the table below.
£ million Cross-border shopping Smuggling Product type 1993 1994 1995 1996 1996 1997 Tobacco products 65 55 50 45 640 690 Alcohol 140 175 180 185 195 195 Total 205 230 230 235 835 885 Figures have been independently rounded to £5 million. Components may not therefore sum to the totals shown.
Figures for estimated revenue losses use Customs' assumption that 70–80 per cent. of alcoholic drinks purchased abroad substitute for similar purchases in the UK.
The estimates of cross-border shopping are for goods purchased duty paid in all other EU member states by United Kingdom residents for personal consumption in the United Kingdom. The estimates for cross-Channel smuggling include goods purchased duty-free.
HM Customs and Excise does not have separate estimates for goods purchased in Belgium and France only. There are no official estimates for years earlier than those shown.