§ Mr. HardyTo ask the Chancellor of the Exchequer if he will estimate the annual revenue losses which are due to the importation of hand rolling tobacco as a consequence of(a) smuggling and (b) the implementation of the duty-free/duty-paid regulations. [26438]
§ Mr. Heathcoat-Amory[holding answer 29 April 1996]: Customs does not have any reliable estimate of the extent of revenue losses due to smuggling of hand rolling tobacco. It is working closely with the tobacco and alcoholic drinks industries with the aim of achieving an objective measurement of smuggling of excise goods.
Customs' estimate of tax revenue—excise duty and VAT—lost from legitimate personal importation of duty-paid tobacco products for the year ending 30 June 1995 is £150 million. There are no separate figures available for hand rolling tobacco, and no official estimate of the extent of duty-free sales of hand rolling tobacco.
§ Mr. HardyTo ask the Chancellor of the Exchequer if he will commission a study of the sales of hand rolling tobacco and of cigarette papers with a view to establishing the extent of tobacco smuggling; and if he will make a statement. [26373]
§ Mr. Heathcoat-Amory[holding answer 29 April 1996]: No. I have already told the Treasury Committee, in response to the report on its 1995 inquiry into cross-border shopping, that Customs and Excise is having discussions with the trade to find an agreed methodology for deriving credible estimates of the level of smuggling in tobacco products. Factors such as sales of hand rolling tobacco and of cigarette papers may form part of the methodology, or may be used to validate it.