Tobacco companies 'fuelling the black market'
British tobacco manufacturers are fuelling the black market by deliberately over-supplying their products to European countries, MPs have warned.
UK manufacturers are supplying more tobacco to European countries than their markets need which is then finding its way back into the UK market without tax being paid, contributing to a loss of £1.9 billion a year, the Public Accounts Committee said.
The Committee said that Britain's tax office, HM Revenue and Customs (HMRC), "needs to identify and seek to correct any shortcomings in the legislation to put a stop to the abuse of exports by tobacco manufacturers".
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