§ Lord Hardy of Wathasked Her Majesty's Government:
What estimate they have made of the total loss of duty due to smuggling of tobacco products and alcoholic drinks during the last four years. [HL1002]
§ Lord McIntosh of HaringeyThe tables below set out Customs' estimate of revenue losses (duty and VAT) to the Exchequer through cross-Channel smuggling of alcohol drinks and tobacco products in calendar years 1996 and 1997.
Revenue Lost to the Exchequer from Smuggling in 1996 (£ million) Product Type Excise Duty VAT Total Revenue Lost Beer 70 35 105 Wine 35 15 50 Spirits 35 10 45 Total Alcohol 135 60 195 Hand-rolling Tobacco 410 75 485 Cigarettes & other tobacco products 135 25 155 Total Tobacco 540 100 640 TOTAL 680 160 835 Notes:
Figures have been independently rounded to £5 million. Components may not therefore sum to the totals given.
Figures are given for the mid-point of the range of possible substitution effects. Customs assumes that 70–80 per cent. of smuggled alcohol (100 per cent. for tobacco products) substitutes for similar purchases in the UK.
Revenue Lost to the Exchequer from Smuggling in 1997 (£ million) Product Type Excise Duty VAT Total Revenue Lost Beer 80 40 120 Wine 35 15 50 Spirits 20 5 25 Total Alcohol 135 65 195 Hand-rolling Tobacco 430 110 540 Cigarettes & other tobacco products 120 25 145 Total Tobacco 550 135 690 TOTAL 685 200 885 Notes:
Figures have been independently rounded to £5 million. Components may not therefore sum to the totals given.
Figures are given for the mid-point of the range of possible substitution effects. Customs assumes that 70–80 per cent. of smuggled alcohol (100 per cent. for tobacco products) substitutes for similar purchases in the UK.
200WAThere are no official estimates for the period prior to 1996. There are no official estimates for the revenue lost through smuggling in freight consignments or by air passengers, and the estimates given above do not include any amounts for these activities.