A retail trade body the ACS (Association of Convenience Stores) is calling for a new strategy for tackling the illegal tobacco trade, as MPs questioned the Chief Executive of HM Revenue and Customs (HMRC) and Director General of UK Border Force on their failure to meet operational targets.
The hearing of the Public Accounts Committee follows a report from the National Audit Office that the border agency is failing to crack down on tobacco smugglers.
The Rt Hon Margaret Hodge MP, Chair of the Public Accounts Committee, has already been critical of the customs agencies. She said: “In 2010-11 nearly £2 billion of potential revenue was lost from the public purse because HMRC hasn’t got a grip on tobacco smuggling. Despite extra funding and new programmes, it is clear that HMRC’s performance is falling short … HMRC’s inability to crack down on unlawful tobacco smuggling not only affects the public purse, but undermines Government efforts to stop people smoking, as members of the public can access cheap illicit cigarettes. HMRC also has a duty to prevent criminal gangs from making big money out of this profitable illicit business.”
ACS Chief Executive James Lowman said: “We welcome the Public Accounts Committee scrutiny of HMRC and the UK Border Force. We are very concerned that they have failed to meet their operational targets. Our view is that this failure is due in significant part to the limitations of current enforcement strategy so long as there continues to be a lack of sufficient resource and attention directed to inland, community centred, enforcement action.
“Existing strategy focuses heavily on detecting product at our borders, but must be supplemented by greater focus on action to root out the gangs that are preying on our most deprived communities and stealing trade from legitimate retailers.”
