EU drowning in illegal black market as Brussels admits it does not know how big black hole is
There is currently no official assessment of the financial damage caused by the "global criminal phenomenon" of illicit tobacco trading, an EU report has found.
The special report, published last month, reveals black market tobacco dealers operating in "almost all member states" of the EU, leading to an estimated thirteen million-pound tax black hole.
Despite documented growth, no framework has been established to measure the implications of the illegal practice.
The findings have led officials to conclude that the "EU fight against illicit tobacco trade is not up to the task."
The report states: "There is currently no comprehensive and robust assessment of the financial impact of the trade in tobacco products in terms of lost tax revenues."
John Coxhead, Professor of Policing at De Montfort University Business School, told GB News: "Whether it’s in Britain or the EU, it's clear black market cigarettes are rife. Illicit tobacco [is] peddled by organised criminal businesses that are ruthless and dangerous. Right now they're making a mockery of law enforcement all over the continent."
Dr Coxhead criticised the EU's approach.
He added that the fact that "European politicians don’t even know how big their tobacco tax black hole is deeply concerning."
The professor said: "Political leaders can’t be sure they’re investing in enough enforcement officers to crush the illegal tobacco trade, if they don’t even know how big the problem really is."
The comments add to revelations in the report that suggest EU member states aren't working closely together, and that estimates of the market size and economic impact are therefore lacking.
In the UK, the tobacco black market is already booming, according to Dr Coxhead, a fact corroborated by a KPMG report revealing that 45 per cent of cigarettes are consumed with no tax paid on them.
He warned: "We must make sure we invest in enough Trading Standards officers. Right now, we’re not investing anywhere near enough and it’s ripping the heart out of our high streets."
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The EU special report sets out objectives to mitigate the financial damage, including a timely overview of the market, regular estimates of its size and economic impact by 2029 and calls for stronger collaboration with EU member states.
On his way to the UN General Assembly, Prime Minister Andy Burnham’s stance remained non-committal in relation to the EU, telling reporters that the question of rejoining was “for another day".
The Prime Minister, who promised voters in Brexit-backing Makerfield he would not try to return Britain to the EU in May, told the People's Channel rejoining the bloc is one of the options he is considering for London's long-term relationship with Brussels.
He said: "We look at all options. The speech was about deciding the long-term direction for this country. Where do we want to be in 10 years' time? And I don't think we now can leave that question unanswered. An option is to stay as we are. Of course, that's an option.
"But public opinion has shifted in that decade, including in Makerfield, and it's right that I say, well, here are the options. George Osborne's put an option forward. Canada has talked about a different relationship with the European Union.
"I can't leave Britain out of those discussions. We do have to have an honest and grown-up conversation about what could a future relationship look like? And then come back to the public and say, well, here are the broad options, and here are the issues involved with each of them.
"That's just the right way to lead. I've got to do what's best for this country."
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