Illegal tobacco is costing the UK £2 billion every year. [1]
It’s draining money from the economy, damaging local businesses and funding organised crime.[2]
Economic forecasts tell one part of the story. But people often judge the state of the economy by what they see in their local areas. As the Spring Statement draws attention to the country’s financial outlook, illegal tobacco remains a stark reality impacting local high streets and communities every day.
Illegal tobacco has a significant impact across the UK.
- It diverts an estimated £2 billion[1] in lost tax revenue each year away from HMRC and into the hands of criminal gangs.[2]
- It undercuts legitimate shopkeepers by forcing them to compete with criminals. While JTI’s cheapest brand on the market costs around £12.50[3], most of which is tax paid to HMRC, a pack of illegal cigarettes costs as little as £5.
- Test purchasing has shown that illegal tobacco is available in local communities across the UK.
Public concern reflects this.
80% of people surveyed in the UK believe politicians aren’t doing enough to tackle illegal tobacco trading.[4]
The impact on communities
Illegal tobacco can affect communities in multiple ways.
- It can increase criminal activity
Enforcement agencies link the trade to organised criminal networks.[2] - It can harm legitimate retailers
Businesses operating within the law may struggle to compete with illegal prices. - It can weaken local economies
Money spent on illegal goods damages the legal economy.
“Rising costs are damaging our business as well as the reduced profits from illegal tobacco sales. The sales that we normally get from add-ons reduces our profits massively. We have to consider how many staff we can afford to pay now and really we want to be paying them a higher wage than we do. We need the government to tackle this problem head on and deal with it.”
Chris Presland - Retailer, Liverpool
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75% of people surveyed in the UK found the increased crime and violence associated with illegal tobacco in local communities very concerning[4]. Ultimately, criminals keep profiting, and communities keep struggling.
IT'S TIME TO SHUT IT DOWN.
Seen something suspicious?
You don't need to confront anyone.
You can report it anonymously, quickly and safely.
If you're aware of anybody selling illegal tobacco you should report this using the anonymous form above, or by contacting HM Revenue & Customs' Fraud Hotline on 0800 788 887, Trading Standards (through the Citizens Advice consumer helpline) on 0808 223 1133 or Crimestoppers on 0800 555 111.
Make your voice heard.
You can contact your MP to share your views and raise awareness about the impact of illegal tobacco in your area. . Find out who to contact here.
Download our template letter to contact them and add your voice to the campaign.
Find out More about our work to tackle illicit tobacco
[1] £2bn figure based on HMRC's tax gap estimates for Excise Duty and VAT losses 2022 - 2023 https://webarchive.nationalarchives.gov.uk/ukgwa/20250501185902/https://www.gov.uk/government/statistics/measuring-tax-gaps (select the table for 2024 and go to table 3.7. See lines 6 and 7 combined for 2022-2023).
[2] HM Revenue & Customs & Border Force. (2024, January 29). Stubbing out the problem: A new strategy to tackle illicit tobacco. GOV.UK. Updated March 1, 2024.
[3] Recommended retail price for JTI's cheapest brand on the market correct as at 19 January 2026. Retailers are free to price as they choose.
[4] This data is based on an online survey that was conducted for JTI by an independent British Polling Council accredited research agency between January 7 and January 29 2026, involving a sample of 15,228 UK adults aged 19 and over. To ensure the findings are representative of the UK general population, the data was weighted by age, gender and region.
Live counter source: £2 billion annual cost of illegal tobacco, based on HMRC’s Measuring tax gaps 2025 edition (tax gap estimates for 2023–2024), published 19 June 2025. https://www.gov.uk/government/statistics/measuring-tax-gaps