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<p>Since 2000, HMRC’s tobacco strategy has reduced the tax gap for cigarettes from
22% in 2000/01 to 10% in 2013/14, and the tax gap for hand-rolling tobacco from 61%
to 39%. However, tobacco fraud remains a problem and HMRC works with other enforcement
agencies to take action against those who participate in the fraud by smuggling and
illegally manufacturing, distributing and selling non-UK duty paid product.</p><p>
</p><p> </p><p> </p><p>Sanctions against those selling tobacco without payment of
duty include seizure of products, and cash, financial penalties and a maximum penalty
of seven year’s imprisonment. On prosecution, HMRC can also apply for withdrawal of
alcohol licenses and orders prohibiting the use of premises for the sale of tobacco
for a period of up to 6 months. Additionally, as a result of coordinated activity
with other enforcement agencies such as Trading Standards, the police and Immigration
Enforcement officers, action can be taken on wider tobacco offences, such as under-age
sales , and alcohol and vehicle licensing and immigration offences.</p><p> </p><p>
</p><p> </p><p>As reflected in the joint HMRC and Border Force refreshed strategy,
‘Tackling illicit tobacco: from leaf to light’, published on 24 March 2015, we need
to get tougher on those involved in tobacco fraud through more effective use of sanctions.
We have to deter participation and ensure that we come down harder on those who repeatedly
offend.</p><p> </p><p> </p><p> </p><p>To this end, the refreshed strategy commits
HMRC to working more across government at all points in the supply chain and to maximising
the use and impact of all sanctions available. The published strategy also commits
HMRC to undertaking an informal consultation in 2015. This will invite views from
other departments and enforcement agencies, legitimate business affected by the fraud
and public health organisations on how we can increase the effectiveness of existing
sanctions and whether we need new sanctions.</p><p> </p><p> </p><p> </p><p>The strategy
can be accessed on GOV.UK:</p><p> </p><p><a href="https://www.gov.uk/government/publications/tackling-illicit-tobacco-from-leaf-to-light"
target="_blank">https://www.gov.uk/government/publications/tackling-illicit-tobacco-from-leaf-to-light</a></p><p>
</p><p> </p><p> </p>
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