During our spring operation, we visited a total of 186 stores, and the results were alarming. More than half of these establishments, precisely 96 of them, were found to be selling illegal cigarettes, Roll Your Own (RYO) tobacco, or vapes, posing a significant threat to public health and safety.
Our investigation revealed shocking prices for counterfeit RYO, with packs being sold as low as £3.50, less than a tenth of the legitimate product’s cost. Moreover, we discovered vapes claiming to have a capacity of 3,500 puffs when, in reality, they were over-filled and potentially dangerous.
At JTI UK, we believe in taking proactive measures to combat the illicit trade. For this reason, we provide all the information we gather to HMRC and Trading Standards. We hope that these authorities act upon this data by implementing enforcement actions and prosecutions against those responsible.
The potential consequences of substantial increases in tobacco duty were highlighted by Gareth Davies MP, the minister responsible for tobacco duty. He emphasized that such hike could inadvertently push people towards the illicit trade, a known fact that must be considered when making any decisions in this regard.
To shed further light on the gravity of the situation, HMRC will soon publish its latest estimates of the ‘tax gap’ resulting from the sale of illegal tobacco. Alarmingly, this figure will only add to the already staggering £51.3 billion in tax revenue lost since 2000.
Ian Howell, our fiscal and regulatory affairs manager, explained that our efforts to combat the illegal trade have expanded, now encompassing test purchasing of vapes alongside tobacco products. Unfortunately, the prevalence of illegal tobacco and vapes is pervasive, making it challenging to effectively tackle this issue. In fact, our survey from last year revealed that almost 40% of smokers admitted to purchasing non-domestic tobacco products within the past month.
While we welcome the forthcoming powers that will allow HMRC to issue ‘on-the-spot’ penalties of up to £10,000 against those selling illegal tobacco, we are disappointed that Trading Standards will not have similar authority. We firmly believe that extending these powers to Trading Standards would have the greatest impact on combating the illegal trade.
Amidst the ongoing update of the government’s Tackling Tobacco Smuggling strategy, it is imperative to consider extending these powers to Trading Standards. This would empower them to act decisively in protecting consumers and communities.
Retailers can play an invaluable role in combating the illicit trade. As JTI UK, it is our responsibility to equip them with the knowledge and confidence to communicate the dangers associated with illegal products to their customers. Selling illegal tobacco and vapes supports criminal activity and tarnishes the reputation of stores within the community. By working together, we can safeguard public health, eliminate illegal trade, and promote security in our communities.
