Andy Leggett, deputy director of alcohol, tobacco and gambling taxes at HMRC, was speaking during the final oral session of the All-Party Parliamentary Beer Group’s inquiry into beer tax fraud.
He said: “I think a lot of the comments have been focused on how enforcement can bring through the changes.
“We were a little bit disappointed in the lack of innovative ideas for other options outside enforcement.”
However he praised the inquiry, explaining that “it has been a really positive and helpful process”.
He also acknowledged problems around fiscal marks and promised to work through the issues. “On fiscal marks, it is clearly the big issue, and I think that’s understood,” said Leggett. “We are willing to work through the issues raised.”
The Government has issued a consultation suggesting ways to combat fraud, including adding tax stamps to cans and bottles from breweries producing more than 200,000 hectolitres.
The British Beer & Pub Association’s (BBPA) brewing director Andy Tighe replied that it is “unfair” to suggest that the trade has not given thought to tackling duty fraud.
He said: “I think it’s slightly unfair to suggest brewers have not given thought to what could be done to tackle fraud. We have, in the BBPA, given a lot of thought to what could be done and clearly there is no magic bullet for the problem.”
Tighe added that the BBPA is “disappointed” that some of the issues the trade has, such as fiscal marks, had not been addressed before the formal consultation.
“The consultation has so many unknowns to be thought through, which makes it hard for the industry to accurately assess the costs and impact,” he said.
Tighe reiterated that the BBPA does not believe the proposals will have an impact on the fraud because the stamps can be easily counterfeited and “there’s nothing to stop beer being smuggled into the UK from Europe and elsewhere”.
The Beer Group will present its report on 17 July.