A black hole in our economy
Illegal tobacco is any tobacco that's made, imported, or sold without paying UK tax. Illegal tobacco steals £2 billion from the UK taxpayer every single year. That's money which is lining the pockets of organised criminals that could be reinvested into communities, used to regenerate high streets, or to ease the pressure on already-stretched local resources.
This isn't a marginal issue. It's a serious economic problem impacting communities across the country.
The impact on your local constituency
The illegal trade undercuts honest shopkeepers in your area, forcing them to compete with criminals who sell tobacco products at prices that no legal business can match. Many small retailers are being pushed out, damaging high streets and the local economy.
£2 BILLION
£2 BILLION
in tax revenue lost annually
People are losing faith in government action
81%
of the public say politicians aren't doing enough
76%
support stronger regulations and tougher enforcement
59%
want to see authorities and companies take real, visible action
70%
of people fear reporting illegal activity due to risk of retaliation
This data is based on an online survey that was conducted for JTI by an independent agency between April 28 and May 8, 2025, involving a sample of 3,000 UK adults aged 19 and over. To ensure the findings are representative of the UK general population, the data was weighted by age, gender, and region.
The public want action.
This is an opportunity to shut illegal tobacco down.
UK Parliament. (2025, May 21). Written question UIN 51940: HMRC Fraud Reporting Gateway for alcoholic drinks and illegal tobacco. https://questions-statements.parliament.uk/written-questions/detail/2025-05-13/51940
We're calling on the Government to treat illegal tobacco as a serious economic and social issue.
Here's how you can help:
- Support tougher enforcement against repeat offenders
- Back higher penalties for offenders and more funding for Trading Standards
- Push for better cross-border controls on smuggling
- Challenge government inaction and advocate for constituency-specific crackdowns
MPs: Illegal tobacco is undermining the UK economy and your local area. Let's work together to stop it. It's time to shut it down.
Book a session to discuss the economic impact in your constituency.
Download our illegal tobacco factsheet
Our research shows a clear consensus:
people want action on illegal tobacco.
£2bn figure based on HMRC's tax gap estimates for Excise Duty and VAT losses 2022 - 2023 https://webarchive.nationalarchives.gov.uk/ukgwa/20250501185902/https://www.gov.uk/government/statistics/measuring-tax-gaps (select the table for 2024 and go to table 3.7. See lines 6 and 7 combined for 2022-2023).