Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what system is in place to monitor potential fraud in the collection of the sugar tax.
Answered by Robert Jenrick
The Soft Drinks Industry Levy is under the control of experienced compliance teams within HM Revenue and Customs (HMRC). Using the Promote, Prevent and Respond compliance strategy, HMRC will use intelligence-based risk assessments to identify those that fail to register or comply with the rules. HMRC will work closely with soft drinks manufacturers, and, supported by legal powers to tackle evasion, will take robust action against those that do not comply.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what track and trace system will be in operation for cigarettes, other tobacco products such as IQOS and substitutes such as e-cigarettes after the UK leaves the EU.
Answered by Robert Jenrick
Until the UK leaves the EU, we continue to be bound by the requirements of its Directives, which includes implementing a track and trace system for all tobacco products. For cigarettes and hand-rolling tobacco, this must be in place by May 2019 and for other tobacco products, by May 2024.
In February 2018, the UK government announced plans to introduce a new category of tobacco product for heated tobacco products, such as IQOS. However, these products and e-cigarettes are not captured under the planned EU system to be in place by May 2019.
It is not possible to comment on post exit scenarios until our future relationship with the EU has been agreed. However, irrespective of EU exit, the government remains committed to introducing a global track and trace system for tobacco products under the World Health Organization Framework Convention on Tobacco Control Illicit Trade Protocol.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, for that reasons the UK has not ratified the WHO Protocol to Eliminate the Illicit Trade in Tobacco Products.
Answered by Robert Jenrick
The government is fully committed to the Protocol and preliminary steps to achieve ratification have begun. Subject to Parliamentary approval, the government plans to complete the ratification process by 2 July 2018. This will enable the UK to participate in the first Meeting of the Parties later this year.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what the tax gap was on (a) beer, (b) wine, (c) spirits and (d) tobacco in the financial tax years (i) 2013-14, (ii) 2014-15, (iii) 2015-16 and (iv) 2016-2017; and what steps he is taking to tackle those tax gaps.
Answered by Mel Stride - Secretary of State for Work and Pensions
The tax gap for (a) beer, (b) wine, (c) spirits in the financial tax years (i) 2013-14, (ii) 2014-15, (iii) 2015-16 is available in Chapter 3 of ‘Measuring Tax Gaps 2017’ at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/655097/HMRC-measuring-tax-gaps-2017.pdf.
Estimates for the alcohol tax gaps for 2016-17 will be published in due course.
The tax gap was for tobacco tax all financial years including 2016-17 is available in ‘Tobacco tax gap estimates 2016-17’, available at https://www.gov.uk/government/statistics/tobacco-tax-gap-estimates.
There are two strategies in place to tackle these tax gaps: one for alcohol, and one for tobacco.
The HM Revenue and Customs Alcohol Strategy is available at:
https://www.gov.uk/government/publications/hmrc-alcohol-strategy. This is designed to tackle all forms of fraud throughout the supply chain, working with other enforcement agencies and industry. Measures to tackle alcohol duty fraud include:
For tobacco, HMRC’s strategy is detailed in “Tackling illicit tobacco: From leaf to light”, a joint publication with Border Force, available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/418732/Tackling_illicit_tobacco_-_From_leaf_to_light__2015_.pdf.
This strategy aims to:
• Create a hostile global environment for tobacco fraud through intelligence sharing and policy change.
• Tackle the fraud at all points in the supply chain from production to retail.
• Change perceptions - Raising public awareness of the links between illicit tobacco and organised criminality to reduce tolerance of the fraud in the UK.
Optimise the use of the sanctions available and, where necessary, develop tougher ones.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, for what reason the Government has not yet ratified the World Health Organisation Protocol to Eliminate Illicit Trade in Tobacco Products.
Answered by Robert Jenrick
It is UK policy that international treaties will not be ratified until all legislation required for implementation has been passed by parliament. We have now met this requirement with the introduction of legislation for the licensing of tobacco manufacturing machinery. This was included in the Finance (No 2) Act 2017 and a statutory instrument for The Tobacco Products Manufacturing Machinery (Licensing Scheme) Regulations 2018 was laid before the House of Commons on 25 January 2018.
Now that legislation has been passed, the text of the Protocol can be laid before Parliament as a Command Paper with an Explanatory Memorandum. Unless Parliament resolves against it, the UK can begin the formal ratification process, which we expect to start shortly.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when the Government plans to ratify the World Health Organisation Protocol to Eliminate Illicit Trade in Tobacco Products.
Answered by Robert Jenrick
It is UK policy that international treaties will not be ratified until all legislation required for implementation has been passed by parliament. We have now met this requirement with the introduction of legislation for the licensing of tobacco manufacturing machinery. This was included in the Finance (No 2) Act 2017 and a statutory instrument for The Tobacco Products Manufacturing Machinery (Licensing Scheme) Regulations 2018 was laid before the House of Commons on 25 January 2018.
Now that legislation has been passed, the text of the Protocol can be laid before Parliament as a Command Paper with an Explanatory Memorandum. Unless Parliament resolves against it, the UK can begin the formal ratification process, which we expect to start shortly.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps are required before the Government will ratify the World Health Organisation Protocol to Eliminate Illicit Trade in Tobacco Products.
Answered by Robert Jenrick
It is UK policy that international treaties will not be ratified until all legislation required for implementation has been passed by parliament. We have now met this requirement with the introduction of legislation for the licensing of tobacco manufacturing machinery. This was included in the Finance (No 2) Act 2017 and a statutory instrument for The Tobacco Products Manufacturing Machinery (Licensing Scheme) Regulations 2018 was laid before the House of Commons on 25 January 2018.
Now that legislation has been passed, the text of the Protocol can be laid before Parliament as a Command Paper with an Explanatory Memorandum. Unless Parliament resolves against it, the UK can begin the formal ratification process, which we expect to start shortly.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what joint research work has been undertaken between HMRC and the tobacco industry in (a) 2015, (b) 2016 and (c) 2017.
Answered by Robert Jenrick
HM Revenue and Customs has undertaken no joint research with the tobacco industry in these years.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many times (a) Ministers and (b) officials of his Department met with representatives from the tobacco industry in (i) 2016 and (ii) 2017; and what the topics of discussion were in each of those meetings.
Answered by Robert Jenrick
Treasury ministers and officials engage with a wide range of stakeholders, and details of Ministerial meetings are published in the Department’s Quarterly Transparency Return on GOV.UK.
Details of policy meetings between HM Revenue and Customs (HMRC) and the tobacco industry are also published on GOV.UK. HMRC does not provide details of meetings with individual tobacco manufacturers to discuss their tax affairs or those concerning information to support HMRC’s enforcement activities.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what research his Department has undertaken on the potential effect of introducing track and trace technology on reducing the amount of lost excise duty on (a) tobacco, (b) beer, (c) wine and (d) spirits.
Answered by Robert Jenrick
HM Revenue & Customs continues to explore how technology, including track and trace systems could improve taxpayer compliance and help tackle the illicit trade in excise goods.
HM Revenue and Customs has conducted no formal research into the potential effect of track and track systems on reducing the amount of lost excise duty. However, the European Commission published an assessment of the impact of implementation of a track and trace system for tobacco products across the EU at: https://ec.europa.eu/health/sites/health/files/tobacco/docs/2015_tpd_tracking_tracing_frep_en.pdf
In November 2017, the UK voted to adopt EU regulations for the introduction of a pan-European track and trace system for tobacco products - a requirement of the EU Tobacco Products Directive 2014. This system will also meet the requirements of the WHO Framework Convention on Tobacco Control Illicit Trade Protocol, to which the UK is a signatory. The aim of the Protocol is to protect public health and includes the creation of a global tracking system to secure the supply chain for tobacco products.