Alcohol and Tobacco

HC Deb 17 October 1996 vol 282 cc1114-5W

Mr. Tipping

To ask the Chancellor of the Exchequer what is the most recent estimate he has received of the loss of excise duty through smuggling(a) alcohol and (b) tobacco. [41219]

Mr. Oppenheim

Customs and Excise published estimates of revenue evasion through smuggling on 19 September. The actual loss to the Exchequer will be less than the amount of revenue evaded, as some smuggling is likely to represent additional consumption, rather than substituting for similar goods bought in the UK. Customs' estimates for the annual revenue—excise duty and VAT—evaded are(a) £210 million for alcohol and (b) £560 million for tobacco products. This amount represents less than 5 per cent. of the annual total excise duty and VAT collected on alcohol and tobacco. These figures do not include amounts for commercial fraud—where revenue is evaded by use of false documentation.