UK Treasury Bears Loses Due To Illegal Cigarette Trade
The declaration was made after the owner of UK-based Gallaher discovered a large number of counterfeit cigarettes during a special trip around London.
As a result it was concluded that lots of famous cigarette brands have been sold in London without observation of all necessary norms.
It is reflected in the non-observation of all necessary taxes and difference between inscriptions on packs and tax stamps. For example the packaging may contain an inscription in Spanish while tax stamp - in Belgian. Thus, as it was concluded, the duty rise which took place in the past led to the rise of illegal cigarette trade in the country. According to the recent researches approximately 44% of tobacco sold in the UK avoid all necessary taxes fixed in the country. Thus the Treasury bears yearly the considerable loses due to the presence of counterfeit cigarettes on the market.
The confirmation that the UK cigarette market is mixed with counterfeit cigarettes is in the process of increase. More than 1 million non-taxed tobacco was revealed during the last 10 months by Her Majesty's Revenue & Customes. It would be reasonable to mention the recent case regarding the illegal cigarette trade which was brought to trial. As a result the ringleaders of the fake cigarette factory were jailed but the loses from the illegal activity of this factory were immense.
A representative of JTI's UK, Martin Southgate is convinced that the plain packaging introduced in Australia is a wrong way as it will only increase the illegal cigarette trade. Allison Cooper, a head of Imperial Tobacco is ready to take legal actions in case the UK Government continues the attempts to introduce the shocking images on packs on the market.