Britain is losing more than £2billion annually in tax revenue due to the illegal tobacco trade, according to new figures.
New research revealed the scale of losses across every region in Britain amounting to £2.2billion.
The South East, excluding Greater London, faces the highest revenue loss at £403million, followed by Scotland at £300million and the West Midlands at £265million.
Greater London itself loses £240million yearly, whilst the North West sees £180million disappear from public coffers.
The analysis shows the top five regions alone account for nearly £1.4 billion in lost tax revenue.
This figure highlights the widespread economic impact of illicit tobacco sales across UK high streets.
New research reveals that whilst 69 per cent of consumers are aware of the illegal tobacco trade, 80 per cent believe there is insufficient enforcement to stop sales on UK high streets.
The findings also show that two in three people are unsure how to identify illegal tobacco products.
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Getty Images | Britain is losing more than £2billion annually in tax revenue due to the illegal tobacco trade, according to new figures
Despite this uncertainty, three quarters of consumers express concern about the repercussions of reporting illicit sales.
The research highlights a significant gap between public awareness of the problem and confidence in authorities' ability to tackle it.
The vast majority of Britons call for stronger action against illegal tobacco vendors.
JTI has launched a national campaign called "It costs more than you think" to combat the illicit tobacco trade.
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|New research revealed the scale of losses across every region in Britain
They provide consumers and retailers with tools to report illegal sales and raise awareness of the impact on local communities.
The campaign calls on the Government to implement tougher enforcement measures, improve funding for Trading Standards and establish better cross-border controls to tackle serious organised crime.
The company plans to unveil detailed regional statistics later this year, with analysis showing the scale of the problem is far-reaching across all UK regions, from Yorkshire and Humberside losing £173million to Northern Ireland losing £70million annually.
Selling illegal tobacco in the UK can result in substantial fines, and for more serious offences, potential imprisonment.
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|Fines can range from £10,000 for selling illegal tobacco to £2,500 for selling to underage individuals
Fines can range from £10,000 for selling illegal tobacco to £2,500 for selling to underage individuals.
Repeat offences can lead to further penalties, including seizure of tobacco products, deactivation of licenses to buy tobacco, and even prosecution.
This could lead to further unlimited fines and imprisonment.