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Tax revenue losses
Smuggling |
Crossborder Shopping |
Total |
|
| £ billion | |||
| 1996 | - | - | 0.7 |
| 1997 | - | - | 0.9 |
| 1998 | - | - | 1.8 |
| 1999-00 | 2.6 | 0.7 | 3.3 |
| 2000-01 | 2.6 – 4.2 | 1.0 – 0.9 | 3.6 – 5.1 |
| 2001-02 | 2.5 – 4.1 | 1.2 | 3.8 – 5.2 |
| 2002-03 | 2.2 – 3.4 | 1.5 – 1.4 | 3.6 – 4.8 |
| 2003-04 | 2.4 – 3.8 | 1.5 | 4.0 – 5.3 |
| 2004-05 | 2.4 – 3.8 | 0.9 – 0.9 | 3.3 – 4.7 |
| 2005-06 | 2.0 – 3.7 | 0.9 – 0.9 | 2.9 – 4.6 |
| 2006-07 | 2.0 – 3.3 | 0.9 – 0.9 | 2.9 – 4.2 |
| 2007-08 | 1.6 – 3.2 | 0.8 – 0.8 | 2.4 – 4.0 |
| 2008-09 | 1.6 – 3.4 | 0.7 – 0.7 | 2.3 – 4.2 |
| 2009-10 | 1.1 – 3.1 | 0.5 – 0.5 | 1.6 – 3.6 |
Source: HM Revenue & Customs (HMRC)
This table shows the revenue lost, both excise duty and VAT, as a result of the smuggling and crossborder shopping of all tobacco products. Since HMRC have been estimating the scale of smuggling and crossborder shopping they have made several changes to their methodology and this is reflected in the table. In 2001 the reporting period was changed from calendar to fiscal years while in 2006 a new methodology was introduced showing estimates in the form of a ‘range’, rather than a single point estimate. Data from 2000/1 was revised to take account of this. When combining the smuggling and crossborder shopping estimates the methodology states that the lower value of smuggling is ‘linked’ to the higher value of crossborder shopping and vice versa.
A full and detailed explanation can be found in HM Revenue & Customs’ publication, Measuring Tax Gaps – 2011