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Detail of outcome
The response document sets out the government’s response to the Control of Raw Tobacco consultation document published below. The responses received are summarised and a full list of respondents is included.
HMRC propose to introduce a registration scheme as set out in the consultation, to be legislated for in Finance Bill 2016. A further technical consultation will be carried out with legitimate users of raw tobacco on the detailed system design later in 2015 to ensure that administrative burdens are kept to a minimum, and that concerns about the integrity and robustness of the scheme are addressed.
The government has decided to introduce controls on the holding and movement of raw tobacco in order to reduce the risk of evasion of Excise Duty.
The consultation is seeking views on 2 options:
- a proposed scheme of registration for users of raw tobacco to tackle this form of tax evasion
- an alternative option to bolster existing powers of seizure
We are also seeking suggestions for any alternative methods of control which would meet the same objective.