Almost half of the cigarettes smoked in the UK last year – equivalent to 10 billion sticks – were illicit, a report has found.
That figure represents a 1.5bn rise on 2024, with illegal cigarettes taking two formats: counterfeit cigarettes – essentially unregulated fakes; and contraband smokes, meaning legitimate cigarettes that were made for a market with lower taxes than the UK, before being smuggled into the country.
Tobacco company Philip Morris, which commissioned accountancy firm KPMG to carry out the research, warns there has been an explosion in “front” shops that sell illegal tobacco, highlighting vape, candy and mobile-phone shops, plus barbers and “low-grade” convenience stores.
The report estimates the UK government lost £4.46bn in tax from smokers buying illegal cigarettes, while organised criminal gangs are behind many illicit sales.
Philip Morris is calling for urgent action from the government to tackle the issue, warning that the trade supports gangs involved in drugs, human trafficking, cybercrime and fraud.
Peter Nixon, managing director at the firm comments: “This should be a major wake-up call for the government; poorly resourced enforcement is depriving the UK of almost £4.5 billion a year. The past few years have been a boon time for organised crime gangs who are selling illicit cigarettes and vapes with impunity, ruining our high streets and communities.”
