HC Deb 26 October 1994 vol 248 cc630-1W
Mrs. Lait

To ask the Chancellor of the Exchequer what extra measures have been taken to prevent the illegal importation of tobacco and alcohol since the opening of the single market; how much they have cost; and what is the value of the illegally imported tobacco and alcohol that has been seized and destroyed.

Mr. Heathcoat-Amory

Customs and Excise has allocated some 240 staff to single market excise work most of whom are specially trained excise verification officers—EVOs—whose remit is to detect and prosecute anyone attempting to defraud the Revenue in this way. The annual cost of an EVO is about £30,000. In the 20 months to August 1994 the revenue value of seized tobacco and alcohol was over £4 million. These goods either have been, or will be, destroyed.

Mrs. Lait

To ask the Chancellor of the Exchequer what estimate has been made of the volume of alcohol and tobacco which has been illegally imported since the opening of the single market; and what volume has been destroyed.

Mr. Heathcoat-Amory

It is by definition difficult to form a reliable estimate of the total volume of smuggled goods. In the 20—month period to August 1994 Customs seized 4,298,927 cigarettes, 22,912 cigars, 25,517 kg of other tobacco and 1,188,449 litres of alcoholic drinks. All the goods sized either have been, or will, be destroyed subject to condemnation proceedings.

Mrs. Lait

To ask the Chancellor of the Exchequer what is the estimated loss to the Exchequer of the illegal importation of tobacco and alcohol from the continent in each year since the opening of the single market.

Mr. Heathcoat-Amory

It is notoriously difficult to calculate the true extent of smuggling. An assumed detection rate of one in 20, in the calendar year 1993 would suggest a revenue loss of the order of £35 million. The revenue value of seizures during the eight months of 1994 was £2.4 million.

Mrs. Lait

To ask the Chancellor of the Exchequer how many prosecutions there have been, since the opening of the single market, for the illegal importation of alcohol and tobacco; and how many have been successful.

Spirits Table Wine Beer
£ per hl pure alcohol VAT rate per cent. £ per hl at 11 per cent. aby VAT rate per cent. £ per hl at 5 per cent. VAT rate per cent.
Belgium 1,289.60 20.5 29.87 20.5 14.98 20.5
Denmark 3,070.90 25 69.31 25 34.05 25
France 1,106.23 18.6 2.69 18.6 7.63 18.6
Germany 1,066.95 15 — 15 8.05 15
Greece 400.12 18 — 18 8.28 18
Ireland 2,161.39 21 212.88 21 77.48 21
Italy 420.37 19 — 13 13.93 19
Luxembourg 852.97 15 — 12 8.12 15
Netherlands 1,236.94 17.5 40.11 17.50 17.5 17.5
Portugal 549.76 16 — 5 10.81 16
Spain 425.47 15 — 15 6.37 15
United Kingdom 1,981.00 17.5 134.77 17.5 52.25 17.5