§ Ms LawrenceTo ask the Chancellor of the Exchequer what are his latest estimates of the revenue lost to the Exchequer through(a) smuggling and (b) cross-border shopping of (i) alcohol and (ii) tobacco. [60841]
§ Dawn PrimaroloHM Customs and Excise new estimates for revenue lost (excise duty and VAT) through cross-Channel smuggling in 1998 and cross-border shopping in 1997 are set out in the tables, together with their revised estimates for earlier years. 853W
Table 1: Revenue lost through cross-Channel smuggling £million Product type 1996 1997 1998 Beer 105 110 140 Wine 45 45 50 Spirits 50 25 30 Alcohol 200 180 220 Hand Rolling Tobacco 500 630 730 Cigarettes and other tobacco products 180 160 270 Tobacco 680 790 1,000 Total 875 970 1,220 Notes:
Figures have been independently rounded to £5 million.Components may not therefore sum to the totals shown.The figures shown use Customs' assumption that between 70 per cent. and 80 per cent. of all alcohol purchased abroad substitutes for similar purchases in the UK.
Table 2: Revenue lost through cross-border shopping £ million Product type 1996 1997 Beer 45 50 Wine 100 140 Spirits 45 50 Tobacco Products 50 60 Total 235 305 Notes:
Figures have been independently rounded to £5 million. Components may not therefore sum to the totals shown.The figures shown use Customs' assumption that between 70 per cent. and 80 per cent. of all alcohol purchased abroad substitutes for similar purchases in the UK.In addition, Customs and Excise estimate that about £50 million per year is lost through smuggling of cigarettes from non-European Union countries by air passengers.
The above estimates exclude any amounts for revenue lost on alcoholic drinks and tobacco products smuggled in freight consignments. Customs and Excise have not published any estimates for the extent of these activities.
A report on Customs' estimates of cross-Channel smuggling and cross-border shopping has been placed in the Libraries of the House.