Growing illicit tobacco market shows failure of high taxes

April 18, 2013 5:31 PM

New research by consultants KPMG for tobacco company Philip Morris International has claimed that the UK has the EU's fastest growing black market, which now accounts for one in six cigarettes sold.

These figures follow research published last year by the TaxPayers' Alliance which revealed that the tax loss from illicit alcohol, tobacco and fuel totalled £28.5 billion.

It's increasingly clear that the UK's high lifestyle taxes have become ineffective at both raising revenue and controlling consumption. Governments can only go so far in hiking taxes before people start to ignore them and enter the black market instead.

Latest Blogs:

TaxPayers' Alliance Icon

TPA’s proposals adopted by Select Committee

4:34 PM 27, Apr 2017 Jan Zeber

TaxPayers' Alliance Icon

Inquiry into government accounts - Written evidence

10:00 AM 27, Apr 2017 The TaxPayers' Alliance

TaxPayers' Alliance Icon

The Conservative Manifesto: Joint note by the TPA and IEA

10:48 AM 26, Apr 2017 The TaxPayers' Alliance

TaxPayers' Alliance Icon

Theresa May wrong to ring fence foreign aid budget

3:00 PM 21, Apr 2017 The TaxPayers' Alliance