New sanctions to tackle the illicit tobacco market have come into force today (July 20).
Under the new rules, any business or individual caught selling illegal tobacco products will now face fines of up to £10,000.
In addition, Local Authority Trading Standards can now refer cases to HMRC for further investigation. HMRC, where appropriate, will administer the penalties and ensure the appropriate sanction is applied and enforced.
The NFRN has welcomed the tougher penalties. National President Muntazir Dipoti said: “The illicit tobacco market has a profound and damaging effect on our businesses. But as well as undermining legitimate retailers, it costs the exchequer billions of pounds in unpaid duty. The Fed has been at the forefront when it comes to calling for action to address these issues, so we welcome the tougher sanctions that have been introduced today.”
As the stronger powers came into force, HMRC and National Trading Standards announced that more than 27 million illicit cigarettes and 7,500kg of hand-rolling tobacco were seized in the past two years.
HMRC’s Deputy Director for Excise and Environmental Taxes, Nis Bandara, said: “Trade in illicit tobacco costs the Exchequer more than £2 billion in lost tax revenue each year. It also damages legitimate businesses, undermines public health, and facilitates the supply of tobacco to young people.
“These sanctions build on HMRC’s enforcement of illicit tobacco controls, will strengthen our response against those involved in street level distribution, and act as a deterrent to anyone thinking that they can make a quick and easy sale and undercut their competition.”
