Retailers see little evidence of the government’s proud boast of cutting drinks and tobacco fraud
The government says it is winning its battle against tobacco and alcohol smuggling, and both are on the decline.
In last month’s public health White Paper it claimed that Customs had succeeded in reversing the increase in cigarette smuggling, reducing it to an 18% share of the market in 2002/2003. It aims to bring it down to no more than 13% by 2007/2008.
And in his recent pre-Budget statement Chancellor Gordon Brown said that duty fraud on spirits represented 13% of the market in 2000/2001, and had fallen to 7% in 2002/2003.
But retail customers at Parfetts’ new depot at Sheffield believe they are still losing a lot of business because many of their customers can obtain illegal goods at a fraction of the prices that legitimate retailers have to charge.
Andrew Clifton, who runs Bargain Beer in Doncaster with his brother, Peter, says cigarette smuggling is rife in his area. “Possibly because we are so far from any port, we don’t seem to have such a problem with booze because the smugglers would probably use most of their profits paying for petrol, but it hits our tobacco sales.
“We know when it’s available because our sales go down,” he says. “My customers tell me they can get 50g of tobacco for less than I have to charge for 25g.”
He believes the only way smuggling will be stopped is to equalise duty rates between the UK and the continent.
“We are all supposed to be European. We can’t be one country and still have different duty rates.
“Either we should go down to their level or they should rise to ours.”
Andrew Spikings of Hillside Stores in Whitwell, Derbyshire, says he also sees a slump in sales when bootlegged tobacco is available locally. “But you can’t blame the customers if they can get it cheaper. They are ripped off by the tax rates here.
“The prices of cigarettes and wine in Spain show that our tax rates here are too high.”
David Singh, of Simaran Stores in Rotherham, says: “Maybe it’s because we’re a long way from any port but it isn’t such a problem in Yorkshire. You get people going on holiday and bringing home some cigarettes to sell to their friends, but nothing too serious.”
Gurdev Sangra of Central Stores in Sheffield says his sales of cigarettes have been falling, but adds: “I’m not sure how much that is due to smuggling and how much is because people are giving up smoking. But it does mean that if people aren’t coming in for cigarettes I’m losing sales on other things too.”
The government says it is winning its battle against tobacco and alcohol smuggling, and both are on the decline.
In last month’s public health White Paper it claimed that Customs had succeeded in reversing the increase in cigarette smuggling, reducing it to an 18% share of the market in 2002/2003. It aims to bring it down to no more than 13% by 2007/2008.
And in his recent pre-Budget statement Chancellor Gordon Brown said that duty fraud on spirits represented 13% of the market in 2000/2001, and had fallen to 7% in 2002/2003.
But retail customers at Parfetts’ new depot at Sheffield believe they are still losing a lot of business because many of their customers can obtain illegal goods at a fraction of the prices that legitimate retailers have to charge.
Andrew Clifton, who runs Bargain Beer in Doncaster with his brother, Peter, says cigarette smuggling is rife in his area. “Possibly because we are so far from any port, we don’t seem to have such a problem with booze because the smugglers would probably use most of their profits paying for petrol, but it hits our tobacco sales.
“We know when it’s available because our sales go down,” he says. “My customers tell me they can get 50g of tobacco for less than I have to charge for 25g.”
He believes the only way smuggling will be stopped is to equalise duty rates between the UK and the continent.
“We are all supposed to be European. We can’t be one country and still have different duty rates.
“Either we should go down to their level or they should rise to ours.”
Andrew Spikings of Hillside Stores in Whitwell, Derbyshire, says he also sees a slump in sales when bootlegged tobacco is available locally. “But you can’t blame the customers if they can get it cheaper. They are ripped off by the tax rates here.
“The prices of cigarettes and wine in Spain show that our tax rates here are too high.”
David Singh, of Simaran Stores in Rotherham, says: “Maybe it’s because we’re a long way from any port but it isn’t such a problem in Yorkshire. You get people going on holiday and bringing home some cigarettes to sell to their friends, but nothing too serious.”
Gurdev Sangra of Central Stores in Sheffield says his sales of cigarettes have been falling, but adds: “I’m not sure how much that is due to smuggling and how much is because people are giving up smoking. But it does mean that if people aren’t coming in for cigarettes I’m losing sales on other things too.”
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