Anne Bruce and Rod Addy
Bootleggers are making "an obscene amount of money" on smuggled cigarettes, according to the Association of Convenience Stores, despite government assurances new measures are working.
ACS public affairs and commercial manager James Lowman said: "News from our members is that in some areas there have been 30% to 50% declines in cigarette sales since personal allowances were increased in October."
He was referring to government increases in guidelines for the amount of imported cigarettes to be permitted for personal use.
He said the ACS had heard professional smugglers were paying for daytrips for couriers to pick up cigarettes.
The ACS is campaigning to persuade the government to reduce tobacco and alcohol duty as "the only real solution".
John Healey, Treasury minister responsible for Customs and Excise, has rejected cuts, maintaining they would lead to tax increases elsewhere. He claimed the fight against tobacco smuggling was being won in an interview with the Financial Times this week.
Customs and Excise told The Grocer volume growth in elicit cigarette sales had stopped since it launched its strategy to tackle tobacco smuggling in March 2000. It added that cooperation with Imperial Tobacco to prevent smuggling of its brands had improved in 2002.
But a prominent wholesaler said: "Up to six months ago there was evidence Customs was reducing the amount of smuggled tobacco, but since then some wholesalers believe there has been an increase in cigarettes smuggled into the UK. I think Healey is anticipating a rise in tobacco duty."
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Bootleggers are making "an obscene amount of money" on smuggled cigarettes, according to the Association of Convenience Stores, despite government assurances new measures are working.
ACS public affairs and commercial manager James Lowman said: "News from our members is that in some areas there have been 30% to 50% declines in cigarette sales since personal allowances were increased in October."
He was referring to government increases in guidelines for the amount of imported cigarettes to be permitted for personal use.
He said the ACS had heard professional smugglers were paying for daytrips for couriers to pick up cigarettes.
The ACS is campaigning to persuade the government to reduce tobacco and alcohol duty as "the only real solution".
John Healey, Treasury minister responsible for Customs and Excise, has rejected cuts, maintaining they would lead to tax increases elsewhere. He claimed the fight against tobacco smuggling was being won in an interview with the Financial Times this week.
Customs and Excise told The Grocer volume growth in elicit cigarette sales had stopped since it launched its strategy to tackle tobacco smuggling in March 2000. It added that cooperation with Imperial Tobacco to prevent smuggling of its brands had improved in 2002.
But a prominent wholesaler said: "Up to six months ago there was evidence Customs was reducing the amount of smuggled tobacco, but since then some wholesalers believe there has been an increase in cigarettes smuggled into the UK. I think Healey is anticipating a rise in tobacco duty."
{{NEWS }}
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