Black market cigarette buying is not a victimless crime
Buying and smoking cheap illicit cigarettes may seem like a victimless crime, but this billion-pound black market hits livelihoods, costs jobs and cheats our public services out of much-needed cash.
Her Majesty's Revenue and Customs (HMRC) estimates £2 billion was lost in tax receipts last year because of tobacco smuggling.
In the West Midlands that equates to £200m in lost tax - and much more for the 5,500 small retailers in lost profits.
Masih Usufzai, manager at the Texaco petrol station in Lichfield Road, Willenhall, said he had lost count of the customers he had lost because of the underground tobacco trade.
The 40-year-old said: "This is definitely a big problem. It makes it hard for reputable businesses when you are competing with illegal activities.
"We have seen people who would buy 70-80 cigarettes a week disappear, I can't believe all of them have stopped smoking.
"Obviously the price of cigarettes keeps going up and a lot of people are turning to cheaper options rather than stop.
Out of 164 people to take part, 93 – 57 per cent – admitted to buying the products, compared to 71 who said they have not.
On our website, Billy Jo Saunders said: "It's hardly surprising, the price of tobacco has increased at such a level many people can no longer afford to buy it, so they turn to the black market. Only our government to blame."
"They don't have the money to spend - but still want to smoke.
"I don't think most of them know how bad it is for them as it is a lot more damaging than normal cigarettes.
"Obviously it hits our livelihood and has a knock-on impact on the amount paid in taxes to pay for local services."
The tobacco industry says that one of the reasons for the scale of the crime is the expensive price which is boosted by high levels of taxation which means smugglers can make huge profits by undercutting retailers.
It comes after yesterday an Express & Star undercover investigation revealed 25 out of 27 shops visited by us in the Black Country were caught selling illegal or counterfeit cigarettes for a fraction of the price.
Wolverhampton and Walsall councils have vowed the examine our evidence.
Jasbir Singh, who runs the Little Un in Overend Road in Halesowen said: "Everybody knows that there are cheap alternatives out there.
"As long as they are so readily available people will be willing to take the risk when they can buy at such low costs.
"We have definitely seen a decline in tobacco and cigarettes. Some will have stopped smoking but that doesn't explain everything.
"People know they can get their hands on cheaper ones, and it is not hard to find.
"It definitely makes it harder for traders like me.
"You can't compete with the prices and therefore we are made to suffer."
British taxes on tobacco are among the highest in the world.
A 12.5g pack of loose tobacco costs around £4.45 in the UK while 50g can be bought in Belgium for as little as £3.40.
Mark Yexley, media relations manager at Japan Tobacco International, said: "Illegal tobacco products that are 'peddled' within communities pose a risk to the future existence of the hard working convenience store owner and anyone who buys counterfeit cigarettes may be contributing to the decline of the high street.
"The vast majority of retailers are the gatekeepers in our community when it comes to the sale of age restricted products and we must foster a culture of No ID No Sale, so that those underage know they cannot buy from reputable outlets."
HMRC spokeswoman Kathryn Corcoran said: "We estimate that tobacco fraud costs the Government around £2bn a year – money that could be spent on services that we all use, such as healthcare. So a cheap smoke isn't victimless – it can cost us all dear.
"Smuggling isn't just a few cheap cigarettes on the quiet.
"That's why we are increasing our efforts to tackle smuggling, and the public and retailers play a vital role in this fight.
"HMRC works tirelessly to pursue those who smuggle tobacco and cigarettes for profit. We do this to protect the livelihoods of honest retailers.
"It undermines efforts to prevent under 18s from having access to tobacco products.
"The sale of smuggled cigarettes is unregulated and those products are often sold to children and young people."
