Licensees face criminal prosecution if they fail to meet alcohol duty stamp laws

The warning is buried in a new Government consultation document​ on alcohol fraud that requires “tax stamps” on certain types of canned and bottled beer.

The consultation suggests exclusions for a range of products that are perceived as low risk for fraud.

These include all draught beers, beer at 2.8% ABV or below, small brewery beers or those qualifying for duty relief, set at a limit of 200,000 hectolitres per annum.

However, there would be an onus on the publican to know which of their packaged beers should carry a duty stamp, and to check these products accordingly.

The document states: “Breaches of fiscal-mark requirements would attract a range of penalties based on those in place for tobacco and spirits duty stamps.

“For example, civil penalties may apply for those who fail to apply the fiscal mark to qualifying products, or apply it incorrectly.

“We also envisage criminal offences for those who are caught trading in unmarked products.”

The Association of  Licensed Multiple Retailers’ strategic affairs director Kate Nicholls said: “The suggestion that pub operators will need to know the market share, size and scale of their suppliers and understand whether their product should carry a duty-paid stamp or not is a recipe for disaster.

“What is worse, if the supplier gets it wrong, he faces a civil penalty. For the retailer, it will result in a criminal prosecution, loss of licence and livelihood.

“That is disproportionate and too great a gamble for many to take.”

Consumers and smaller brewers would be the big losers if pubs take the safe option and sell only major brands, Nicholls added.

The Government estimates alcohol duty fraud costs the taxpayer up to £1.2bn a year.

However, Brigid Simmonds, chief executive of the British Beer & Pub Association, said tax stamps on every can and bottle of beer was a “disproportionate response” and the level of duty fraud was nowhere near the scale suggested by HM Revenue & Customs (HMRC).  

“Brewers have put a lot of effort into providing detailed data on beer movements,” she said.

An HMRC spokeswoman said hosts would not be responsible for applying fiscal marks unless they were also responsible for importing beer into the UK.

But she added: “In the proposed scheme, retailers, licensees and wholesalers that deliberately flout the law by knowingly supplying un-marked beer could be subject to criminal prosecution.”

Any decision would be based on information provided by the industry via the consultation, she said.

The consultation runs until 25 June.