Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if her Department will take (a) fiscal and (b) legislative steps to help prevent repeat offenders in the illicit tobacco market operating through high street retailers.

HMRC has a robust strategy to tackle the illicit tobacco trade.

In July 2023, HMRC introduced a strengthened sanctions regime for breaches of the UK Tobacco Track and Trace System to combat illicit tobacco sales, particularly targeting repeat offenders operating through high street retailers.

Powers introduced under the Finance Act 2022 enable HMRC to apply an escalating sanctions model based on both the frequency and severity of offences. Penalties include fines of up to £10,000, seizure of illicit products, and exclusion from the UK Tobacco Track and Trace system.

New powers were also given to Trading Standards to make referrals to HMRC where they find evidence of high street retailers selling tobacco products that do not comply with the UK Tobacco Track and Trace System. HMRC is then able to apply the sanctions model as appropriate to tackle the non-compliance.