£400m cost of illegal cigarettes to region
Illicit tobacco cost the retail trade more than £400 million in lost sales across the Midlands last year – days after police seized thousands of pounds worth of illegal cigarettes from a shop on the Shropshire border.
The results, from tobacco industry surveys, show one fifth of cigarettes and nearly half of hand rolling tobacco is either illicit or cross-border.
Police and trading standards seized 85,000 illegal cigarettes from a shop selling Eastern European food in Drapers Lane, Leominster, earlier this week, including tobacco with a street value of £15,000. Two men were arrested and have been bailed.
Police said the cigarettes were non-UK duty paid and were a combination of smuggled and counterfeit packets.
The Tobacco Manufacturers' Association (TMA) said the £420 million figure was equivalent to £39,000 in lost turnover for each of the 4,700 small shops operating in the region. The tax loss to the Government is said to be £330 million.
Mike Goodall, regional manager of the TMA, said: "These figures highlight the impact the UK's tobacco tax regime is having on regional businesses.
"Consumers, faced with higher prices and falling incomes, feel compelled to buy cheaper products.
"At a time when the economy is stalling and high streets are failing, the Government should be looking to protect businesses.
"An urgent review is needed of this counterproductive tax policy."
The stash in Leominster included legitimate brands such as Mayfair, with stickers indicating UK duty had been paid on them, and counterfeit brands with names such as MG and Minsk.
In addition, more than eight kilograms of illegal hand-rolling tobacco was also seized.
Herefordshire Council's head of consumer and business protection Mike Pigrem said: "This was a targeted raid resulting in a significant haul of illicit tobacco.
"It is one of many that we have carried out in Herefordshire over the last few years.
"Illicit tobacco, whether counterfeit or non-duty, is a growing problem. Not only does it rob the government of revenues, it also severely damages the local economy and legitimate traders alike.
"There are also likely to be health concerns as their manufacture and composition are not controlled."
Anyone in Herefordshire with suspicions about illegal tobacco sales can call (01432) 261761.
