HMRC seizes illicit tobacco worth £719 million in tax last year

HM Revenue and Customs (HMRC) said it has seized more than 1.3 billion illicit cigarettes between April 2023 and March 2024, worth more than £678 million in tax, along with hand-rolling tobacco worth £41 million.

In the same period, the agency secured prison sentences totalling 148 years against 107 cigarette and tobacco fraudsters.

These new figures, published on Thursday, show the tobacco smuggling tax gap - the amount of estimated duty lost every year to tobacco fraud - has now reduced from 16.9 per cent in 2005, to 6.9 per cent.

“We are determined to tackle the tax gap to help rebuild the public finances and ensure everyone pays their fair share,” James Murray, exchequer secretary to the treasury, said.

“Stamping out the illicit tobacco trade will also cut down funding for wider crime and improve public health.”

Earlier this year, HMRC and Border Force published a new illicit tobacco strategy ‘Stubbing Out the Problem’, which set out a continued commitment to reduce the trade in illicit tobacco, with a focus on reducing demand, and tackling the organised crime groups who are responsible.

HMRC also works closely with Trading Standards to disrupt the illicit tobacco trade at retail level – known as Operation CeCe. This work began in January 2021 and has already led to the seizure of over 51 million illicit cigarettes and nearly 13 tonnes of illicit hand-rolling tobacco in the first three years.