§ Mr. Matthew BanksTo ask the Chancellor of the Exchequer what changes Customs and Excise are252W proposing to the measurement of cross-border shopping in alcohol and tobacco products; and if he will make a statement on the latest estimates of revenue losses. [39641]
§ Mr. Kenneth ClarkeCustoms have advised me that their estimate of the extent of legitimate personal imports of alcoholic and tobacco products is now calculated on the basis of data from the international passenger survey. Customs' earlier estimates used data from the omnibus survey. The international passenger survey has a larger sample than omnibus, interviewing travellers during or shortly after their journey. It is therefore considered a more reliable source of data on cross-border shopping. Customs have consulted with representatives of the alcohol and tobacco industries over this change, and have given them all relevant data.
Customs' estimate of total tax revenues—excise duty and VAT—lost from legitimate personal importation of alcohol and tobacco for the calendar year 1995 has been re-calculated on this basis as £210 million for duty paid alcoholic drinks and £80 million for tobacco products, making a total of £290 million. The new figure for alcoholic products is broadly in line with that calculated from omnibus data. As before, these figures use Customs' assumption that 50 per cent. of alcoholic products purchased abroad represent additional consumption.