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HMRC’s plans for harsher penalties on illegal tobacco applauded by ACS.

HMRC's plans for harsher penalties on illegal tobacco applauded by ACS. ACS, applauded, harsher, HMRC, HMRCs, illegal, illicit tobacco, penalties, plans, tobacco, tougher sanctions Food and Beverage Business

The HM Revenue and Customs (HMRC) is currently exploring the possibility of imposing penalties amounting to £10,000 for persistent violators of the law who are involved in the sale of illicit tobacco. Additionally, the agency is also considering the six-month revocation of track and trace codes, also known as economic operator ID, for cases of non-compliance that are deemed severe.

According to a submission made by ACS, a trade association that represents over 33,500 local shops, there has been a lack of meaningful enforcement actions taken against businesses found guilty of selling illicit tobacco. In fact, almost half of these businesses (48%) only received a verbal warning in 2019. Thus, the ACS is urging authorities to take a low tolerance approach towards these illegal activities to send a clear message that such actions are unacceptable.

In a statement, ACS Chief Executive James Lowman expressed his support for any measures that can help combat the proliferation of the dangerous illicit market, which poses risks to both consumers and responsible retailers. However, he also emphasized that stronger sanctions must be accompanied by proper and rigorous enforcement actions to ensure that these products are effectively removed from store shelves and to deter others from engaging with criminal gangs.

As per the UK government’s estimates, the tobacco tax gap which refers to the amount of tax revenue lost from unpaid duty and VAT, was at a staggering £2.5bn in 2020-21. With this in mind, it has become imperative for the HMRC and other relevant agencies to ramp up efforts in enforcing the law and implementing stricter penalties against persistent violators.

Overall, it is crucial for stakeholders in the tobacco industry to prioritize consumer safety and lawful business practices to combat the proliferation of illicit tobacco sales. The stringent implementation of sanctions against violators and active enforcement actions can significantly help deter people from engaging with these illegal activities.

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