MPs on the Beer Tax Fraud Inquiry Panel argued that the Government’s strategy to target organised criminal gangs is “ineffective”. They added that the widespread trading in black-market goods, which has gone unchecked, “undermines lawful society and sets an ominous precedent”.
They also argued the introduction of fiscal stamps is “premature” and added that voluntary measures, to be developed by trade bodies and other agencies, have an “important role to play”.
The APPBG put together a panel of MPs to conduct the inquiry in response to the Government consultation, which proposed the introduction of duty stamps on beer bottles, cans and containers below 10 litres.
The report urged greater communication between HM Revenue & Customs (HMRC), trading standards, the UK Border Force and the industry and supply chain.
MPs also claimed that HMRC needs to act on information provided.
The report added: “We want to see clear and explicit trading standards powers to seize and pursue action on non-duty-paid alcohol.”
It called for a “step change” in the collaboration between HMRC and the industry so that a methodology for measuring beer-tax fraud can be agreed, and suggests the National Audit Office leads this work. The Government claims tax losses from beer-duty fraud cost £500m per year, but the British Beer & Pub Association claims the figure is nearer £100m.
APPBG chairman Andrew Griffiths MP said: “Beer-tax fraud continuing unchecked has a corrosive social impact and repercussions far beyond the brewing industry.
“No single measure is likely to have a marked effect on its own. A series of measures targeted at specific aspects of the problem may work to disrupt the business models of criminal gangs behind the fraud, without imposing disproportionate burdens on legitimate producers, suppliers, retailers and consumers of beer.”
Other recommendations:
- Options such as the European electronic tracking system should be given time to prove their capabilities.A benchmark for assessing these measures should be introduced.
- The brewing industry must produce a template ‘good practice guide’ on supply chain due diligence.
- HM Revenue & Customs should work closer on sharing information about the seizure of products.
- The Treasury makes public the impact of duty levels on fraud.
- There should be a better sharing of data to interpret market trends.