Newsagents face ruin by smugglers

A survey has revealed that small retailers in the South West are losing around £50,000 a year because so many customers now buy cheap cigarettes on the black market.

Anti-smuggling campaign group Tobacco Alliance which carried out the study says the problem is so severe that one in five of the region's shop-owners want to call it a day.

Traders say the only solution is for the Government to slash taxes on tobacco to stop the smugglers.

Mustafa Dogus, 23, of the family-run General Stores in Hythe Road, Old Town agrees that urgent is action is needed.

"Customers don't want to pay £5 for our cigarettes when they can buy smuggled cigarettes for £2," he said.

"The real reason for the duty isn't to stop people smoking, it's to make money for the Government.

"We're not so badly affected because we sell lots of other goods, but it is noticeable.

"Shops like this one have been around for decades, and are an important part of the community.

"We are luckier than many others because we have a good location, without any competition."

Narenda Patel, 50, who runs Sherbourne News in Sherbourne Place, Nythe, has noticed a fall in tobacco sales over the last few weeks.

"Sales are down because so many people are bringing cheap cigarettes back from holiday with them and selling them," he said.

"It has a big effect on my business.

"If it continues like this I don't think shops like mine will exist in five or 10 years."

The survey found that nearly 90 per cent of shops had reported a drop in tobacco sales due to smuggling.

A quarter had been forced to cut staff because of the dent in takings.

Roger Bendell, of the Tobacco Alliance, which represents 19,000 retailers, said: "We very much welcome the recent achievements of HM Customs and their increased efforts through Customs Minister John Healey MP in tackling tobacco smuggling.

"But the root cause of the problem is the high level of tobacco taxation imposed by the Government."

Tamash Lal