§ Mr. Heathcoat-AmoryTo ask the Chancellor of the Exchequer if he will estimate(a) the retail value of goods purchased and (b) the tax, broken down between excise duty and VAT, lost through (i) cross-border shipping and (ii) cross-border smuggling of (1) alcohol products and (2) tobacco products for each year since 1996. [119217]
§ Dawn Primarolo[holding answer 14 April 2000]: The tables show the revenue lost through cross-border shopping and cross-Channel smuggling, and the estimated retail value of equivalent goods bought through legitimate UK retail outlets. Cross-border shopping estimates for 1999 are not yet available.
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Table 1: Cross-border shopping £ million1 1996 1997 1998 Alcohol Excise 130 170 200 VAT 55 75 90 Total Tax 190 245 290 Retail Value 375 505 585 Tobacco Excise 35 50 70 VAT 10 10 15 Total Tax 45 60 85 Retail Value 60 80 115
Table 2: Cross-channel smuggling2 £ million1 1996 1997 1998 1999 Alcohol Excise 140 120 155 140 VAT 60 60 75 70 Total Tax 200 180 230 215 Retail Value 395 395 505 485 Tobacco Excise 540 625 750 840 VAT 140 155 185 215 Total Tax 680 780 935 1,055 Retail Value 925 1,040 1,410 1,440 1Components are rounded to the nearest £5 million and therefore may not sum to the totals shown. 2The figures exclude any amounts for alcoholic drink and tobacco products smuggled in freight consignments. Customs' assessment of the overall revenue lost from all forms of tobacco smuggling, including that in freight, is £2.5 billion in 1999. No comparable assessment of the overall revenue lost from all forms of alcohol smuggling is available.