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Europe, Smuggling

£5m penalties for tobacco manufacturers who aid smuggling

10.02.06 | Comment? | Published by Luke Brown

HM Revenue & Customs has issued a press release detailing the UK government’s plans to fine tobacco companies who don’t do enough to ensure that cigarettes and hand rolling tobacco are not smuggled into the country, depriving authorities of tax money.

Tobacco companies will, amongst other things, be expected to know “their markets”, only supply them “in quantities that reflect legitimate demand”, “know their customers” and only supply “those who are legitimate and law-abiding”. I wonder if they will be issued with cool tax collector badges as well, not to mention expert lectures on how the market works.

A statement from John Healey MP, the Financial Secretary to the Treasury - no doubt a right and honourable man - took absolutely no responsibility for the existence of the black market of cigarette smuggling due to his government’s high duties and taxes, which is presumably instead all the fault of tobacco companies:

Tobacco smuggling is not a victimless crime: it is run by organised criminal gangs with no regard to the harm they cause to our communities. Smugglers undermine law-abiding businesses, use the proceeds to fund other types of organised crime and provide an unregulated supply of tobacco which undermines Government health objectives and cheats the public purse of tax that is due.

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