I spoke to Rohan Pike, the founder of the Australian Border Force’s Tobacco Strike Team, about his country’s black market tobacco nightmare. 80% of the market is illegal, tobacco tax revenue is down by three-quarters and there have been nearly 300 firebombings. It's a warning to the world but the world won't listen.
Today, HMRC produced its tobacco tax gap estimate for 2024/25. As I have explained before, HMRC's methodology systematically underestimates the size of the illicit market and should be scrapped in favour of empty pack surveys (as used in Ireland). In their latest edition, they have resorted to "imputing" the figures for 2024/25. This is essentially guesswork based on projecting from past trends - and the past trends are themselves unreliable. It's a farce and needs to stop. According to HMRC, the amount of illegal handrolling tobacco sold is at an all time low!
Watch my interview with Rohan below.
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