The Association of Convenience Stores (ACS) has backed proposals for tougher sanctions against illegal tobacco brought forward by HM Revenue and Customs (HMRC), reports Forecourt Trader.
In its consultation, the HMRC proposed introducing fines of up to GBP 10,000 for anyone selling large amounts of illegal tobacco as well as a six-month removal of track and trace codes (economic operator ID) for severe cases of non-compliance, reports Forecourt Trader.
The ACS welcomed the suggestion and pointed to the lack of action currently taken against businesses selling illicit tobacco. According to the ACS, 48 per cent of businesses that were found to be selling illicit tobacco in 2019 only received a verbal warning and no further consequences.
“We strongly welcome any measures aimed at tackling the dangerous illicit market which harms both consumers and responsible retailers. If introduced, these tougher sanctions must be backed up with proper local enforcement to get these products off shelves and deter others from purchasing them from criminal gangs,” said ACS chief executive James Lowman.
The amount of tax lost in unpaid duty and VAT amounted to GBP 2.5 billion in 2020-21, according to Forecourt Trader.