§ Mr. CummingsTo ask the Chancellor of the Exchequer (1) what the extent of revenue losses due to cross-border shopping and tobacco smuggling is currently estimated to be; [36157]
(2) if he will make a statement on the discrepancy between the tobacco industry and HM Customs and Excise figures in relation to revenues lost to the Exchequer from cross-border shopping and tobacco smuggling. [36041]
§ Mr. Heathcoat-AmoryCustoms' estimate of excise duty revenue lost from legitimate personal importation of duty paid tobacco products for the year ending 30 June 1995 is £120 million. Additionally, VAT receipts of £30 million are estimated to have been lost. Thus, the estimate for the total loss of tax revenues from such legitimate cross-border shopping for the year ending 30 June 1995 is £150 million.
Customs does not currently have a reliable estimate of the extent of excise duty losses due to smuggling of tobacco products. It is working with the tobacco and alcoholic drinks industries with the aim of achieving an objective measurement of smuggling of excise goods.
Customs is currently discussing with the tobacco and alcoholic drinks industries the most reliable basis for estimates of revenue lost from the legitimate personal importation of duty paid alcohol and tobacco products.