§ Mrs. BallardTo 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 PrimaroloCustoms' 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.