The Livery Newsletter and Gazette Issue 28 Winter 2017 | Page 16

Tobacco Manufacturers’ Association
The lunch was deliciously catered by Mark Grove
Digs Into The Illicit Trade and his team at Cook & Butler and we cracked
along at a goodly pace. Our guests were admirably
introduced by Liveryman Fran Morrison and our
Did you know that the Government is losing £3 billion a Principal
year in taxes
as nearly
three-quarters
UK smokers
Guest,
Tim Wonnacott
gave a of generous
and
buy tobacco from sources that don’t pay UK tax, including
buying
from
the
illicit
trade?
very humorous reply to which I responded initially
by surveys
drenching
poor
Tim UK
in a smokers
glass of about
water - the
he illicit
was
Each year the Tobacco Manufacturers’ Association (TMA)
over
12,000
very kind by
about
it (sorry
Tim!).
I was
very pleased
trade. The study, which is carefully weighted to be representative
region,
income,
age and
gender,
and
to
show
off
the
newly
found
Livery
Grant
Arms in
includes questions from the UK tax authorities, offers unprecedented insight into the illicit tobacco of trade
and Letters
Patent
the UK and the behaviours of adult smokers and their attitudes
towards
it. which have been missing for many
years - our Clerk tenaciously sought them out, and
This year’s survey makes for pretty hair-raising
The
survey
findings Past
also Master,
indicated
that Allen,
buying and
illicit
the new
Immediate
Chris
his
reading, though it may not surprise anyone who
seems
to
have
become
more
‘acceptable’
.
Only
12%
IPM, Mark Gower-Smith have funded a beautiful re-
has seen how the illicit trade has boomed in recent
of
smokers who
of illicit
in their
local
presentation
and knew
they are
now tobacco
resplendent
in frames
years as tobacco taxes have risen and draconian
area
reported
it
to
the
authorities
-
a
big
drop
from
carved with tobacco leaves (or close to); Sandra also
regulations - now including plain packaging - have
the
21% a who
it in seen
2016. since
Buying
located
huge reported
banner not
1985 illicit
and Angus
been introduced.
has
also crept
Smokers
on shy
Menzies,
Clerk up to the
the income
Master scale.
Mariners
and never
higher
incomes
(over
£60,000
a
year)
were
found
of a challenge saw to it that it was displayed on the
The latest survey finds that over 40% of smokers
to
be pretty much as likely to buy illicit as those
Quarterdeck.
in Britain now buy tobacco from illicit sources,
on low incomes (less than £6,000 a year). Perhaps
while nearly three quarters of smokers (72.5%) - an
Whilst all this
was
on, cost
apparently
biblical-
predictably,
due
to going
the high
of UK smokes,
astonishing 7 million people - buy tobacco from
style
downpours
were
being
had
all
over
London
48% of the low earners bought tobacco from
illicit
sources where UK taxes aren’t paid, which include
- oblivious
to so
all did
that 40%
drama
we higher
ended earners.
our lunch
sources.
But
of the
both illicit sources and products brought in from
and trooped back to the quarterdeck where Coffee,
abroad.
The
survey
found
that smokers
stockpiling
Cigars,
and also
Cognac
awaited
us (I did are
mention
that
illicit
or cheap
imported
More C’s..)
than and
half of
our Livery
enjoyed
dining tobacco.
on the High
Giles Roca, Director General cigarette smokers buy 200 or more when they buy
which seemed to hit the mark – Liveryman Jemma
of the TMA (pictured),
from
sources
don’t
pay UK the
tax.
Freeman
had that
kindly
provided
torpedo cigars
said: “These figures mean
and had had them placed in souvenir tubes with our
the Government is losing
The high cost of tobacco products certainly seems
Crest emblazoned on it. Several of us also sported
out on £3 billion a year in
to play a role in smokers’ attitudes. In the last
a limited edition Livery Smoking hat - originally
tax revenue from tobacco
seven years, tobacco taxes rose by 65%, and went
conceived as a sort of shooting hat, it serves its
purchases. Worse, there is
up by 5.9% in this year’s March Budget alone. So,
purpose so well as a “team” hat, that of the twenty
evidence that children are
it’s perhaps no surprise that the TMA survey found
ordered, but one remained by the close of the day!
accessing illegal tobacco
almost 90% of smokers saying tobacco prices are too
Thank you to the Master Mariners for allowing us the
sources; for example, a survey by North West
high or far too high. Further, almost 60% said that
use of the venue, to Tim for being a perfect Principal
Trading Standards in 2015 found that 39% of
rising prices tempt them to buy tobacco products
Guest, and for everyone attending and giving my
children had purchased cigarettes with non-English
that don’t pay UK tax.
year such a special start.
health warnings. We believe the Government’s high
tobacco tax policy is driving much of this behaviour, Has regulation also played a part? Almost half the
and that the Government needs to review its current smokers surveyed (45%) said plain packaging and
the bans on small tobacco packs tempted them
to
The Master
approach.”
buy illegal tobacco - significantly more than the 31%
who said these did not tempt them.
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