HC Deb 12 June 1997 vol 295 c570W
Mrs. Ballard

To ask the Chancellor of the Exchequer what estimate she has made of(a) the loss of revenue to the Exchequer and (b) the loss of income to retailers in the United Kingdom due to the illegal importation of tobacco, wines and spirits. [2543]

Dawn Primarolo

Customs' current estimate of the total revenue evaded (excise duty and VAT) in a year through the smuggling of alcohol and tobacco is set out in the table below. The table also sets out Customs' estimate of the retail value of the smuggled goods at UK off-licence prices, including excise duty and VAT. The amounts actually lost to UK retailers and the Exchequer will be less than the amounts shown below. This is because many smuggled goods, particularly alcoholic products, represent additional consumption rather than substituting for similar goods purchased in the UK.

£ million
Product type Revenue evaded Retail value
Spirits 50 75
Wine 50 100
Beer and cider 110 235
Tobacco products 560 765
Total 770 1,175

The above estimate does not include any amounts for commercial fraud.