JTI Research: Nine UK Local Councils Took No Action Against Illegal Tobacco

Nine local councils in the UK have not investigated or prosecuted illegal or counterfeit tobacco in the past five years. The UK HM Revenue and Customs estimates that tax losses due to illegal tobacco have reached £9.3 billion since 2018.

According to Fnanznachrichten, Japan Tobacco International (JTI) released a study stating that at least nine local councils in the UK did not conduct any investigations or prosecutions regarding illegal or counterfeit tobacco between 2018 and 2022. 

During these five years, some councils, including Rochdale, Harrow, and Kingston upon Thames, chose not to take action, while councils in cities like Hull conducted 249 investigations and prosecuted 53 offenses during the same period. 

JTI's Freedom of Information requests to 96 councils in England and Wales indicate significant differences in the approaches taken by local councils. 

JTI believes that the inaction of these councils undoubtedly leads to an increase in illegal tobacco sales, which are often associated with organized crime, harming local communities and resulting in a significant tobacco tax gap. According to HMRC estimates, this gap is the difference between the tax that should theoretically be paid to HMRC and the actual tax paid. 

Since 2018, £9.3 billion in tax revenue has been lost, with a tax gap of £2.2 billion in just 2021-22. 

According to the Police Federation, £2.2 billion could fund over 77,000 new police officers. 

Sarah Connor, JTI's UK Communications Director, stated: "Some councils' poor enforcement of existing laws raises doubts about their ability and capacity to enforce more complex generational bans. Illegal tobacco is already a significant issue, and generational bans could drive adult smokers back to cigarettes, worsening the problem."