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Crime: Fuel Smuggling

Volume 705: debated on Friday 14 November 2008

asked Her Majesty's Government:

What has been the estimated loss of revenue to HM Treasury from fuel smuggling between Northern Ireland and the Irish Republic in each of the past 10 years. [HL6130]

Estimates of the revenue lost through fuel smuggling, or indeed any illegal consumption of diesel and petrol in Northern Ireland, are not available because it is not yet possible to split revenue losses between those resulting from the illicit market and those from legitimate cross-border shopping. However, information relating to the revenue not collected due to non-UK-duty-paid consumption of fuel in Northern Ireland was made available to the House of Lords Library at the time of the October 2007 Pre-Budget Report, in the document entitled Measuring Indirect Tax Losses2007.

The most recent published figures for both the petrol and diesel revenue not collected in Northern Ireland are also shown in the following tables.

Northern Ireland: Diesel: Revenue Not Collected and Market Shares: Non-UK-Duty-Paid Market1 2

2001-02

2002-03

2003-04

2004-05

2005-06

NUKDP Market Share:

58%

53%

51%

42%

43%

Associated Revenue Losses (£ million):

210

210

220

190

210

Northern Ireland: Petrol: Revenue Not Collected and Market Shares: Non-UK-Duty-Paid Market1 2

2001-02

2002-03

2003-04

2004-05

2005-06

NUKDP Market Share:

18%

18%

18%

13%

14%

Associated Revenue Losses (£ million):

60

60

60

50

50

1 Figures are rounded to the nearest £10 million or 1 %.

2 Estimates include duty and VAT.

Estimates for 2006-07 are not currently available. They are expected to be published at the time of the 2008 Pre-Budget Report.