About one-third of smokers end up buying illicit tobacco, says a recent survey, which also reveals a spike in the trade of such products on social media.
As per a survey of 12,000 smokers conducted in November and December 2021 by the Tobacco Manufacturers’ Association, about 71 percent of those surveyed bought tobacco in the last year that was not subject to UK tax.
One in five smokers claim to only buy ‘branded’ tobacco even though it has been illegal in the UK since 2016, states the survey, adding that social media is seeing a surge in illicit tobacco sales with 19 percent of respondents buying from social media and/or websites advertising cheap tobacco, as compared to just 4 percent before the pandemic.
The survey’s finding further adds that 37 percent of respondents were aware that illicit tobacco is used as a front for other illegal activity such as people trafficking or modern slavery compared to 25 percent in 2020.
The illicit tobacco market in the UK remains stubbornly resilient with more than 7 in 10 smokers (71 percent) surveyed claiming to have bought tobacco that was non-legal (i.e. had not had UK tax paid on it) last year –a reduction from a high point of 78 percent in 2019.
There were reductions across the UK, except for London where the number of smokers purchasing illicit tobacco is unchanged at 85 percent from 2019.
According to the most recent HMRC Tax Gap data, illegal smuggling and consumption of illicit tobacco cost the government £2.3 billion in lost revenue 2019-2021. In total, the Government has lost close to £49 billion in revenue since 2000, that equates to £2.45 billion in lost tax every year, which could be spent on vital public services.
The trade in illicit tobacco continues to have an extraordinarily negative impact on retailers, with tobacco and e-cigarette products representing the largest annual sales category for both independent retailers (34 percent) and the overall convenience market (21 percent) according to the Association of Convenience Stores.
Covid ‘lockdowns’ have had an impact on illicit tobacco sales, with the survey findings pointing to a major spike in people buying illicit tobacco through social media and websites advertising cheap tobacco, as well as from friends and family.
Rupert Lewis, Director of the TMA said: There is positive news in this year’s survey findings, with more people reporting illicit tobacco when they were aware of it (it is a major uplift to 32% compared to 17percent in 2017) and a decline in people purchasing illegal tobacco in every region across the UK (with the exception of London).
However, the 2021 findings still highlight the continued widespread availability of illicit tobacco, as well as the entrenched perception among many consumers that it is ‘acceptable’ to trade or buy illicit tobacco.
It is astounding that six years after ‘branded’ tobacco was prohibited from sale in the UK (i.e. non plain packaged) that 1 in 5 smokers surveyed, still only purchase ‘branded’ cigarettes or Roll Your Own tobacco.
Moreover, the surge in illicit tobacco sales through social media channels has become a major area of concern, with 19 percent of respondents claiming to have used platforms to purchase and trade illicit tobacco, compared to only 4 percent before the pandemic.
