Illicit beer now accounts for up to 14% of total UK sales according to HR Revenue and Customs figures (HMRC), reports the Morning Advertiser (MA).
The Treasury reportedly missed an estimated £800m in 2009/2010 from lost duty and VAT revenue. In 2008/2009, the figure was £550m, with illicit beer making up 10% of the market share.
Earlier this month illegal alcohol worth more than £250,000 was seized at various locations in Glasgow. A BBC report said the alcohol was intended for export but had been diverted back to avoid paying duty. Earlier in the year reports of a rise in counterfeit alcohol production hit the news following a blast that killed 5 people in Boston.
The MA suggested that rising duty and the VAT increase at the start of the year is fuelling the rise in illegal imports of beer. See here for figures on the value of smuggled alcohol seized.
HMRC has a 'tackling alcohol fraud strategy' and has a Smuggling hotline (0800 59 5000) for fraud or smuggling reports.
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