£130m illegal tobacco factory smashed

One of the UK’s biggest ever illegal tobacco factories has been dismantled after a raid in Leicester.

The state-of-the-art factory, which was capable of producing more than seven million cigarettes a week, was uncovered in an operation by HM Revenue and Customs (HMRC) with support from law enforcement partners in Poland.

The sophisticated set up included professional extraction systems, insulation to hide noise, expensive machinery and accommodation for staff.

It’s estimated the secret two-storey factory would have cost more than £1 million to set up and would have led to lost tax revenues totalling more than £130 million per year.

More than 8.5 tonnes of tobacco was also recovered from the site, worth more than £3 million in unpaid duty. Nine fully loaded lorries were needed to remove the machinery.

Richard Las, Head of Operations, Fraud Investigation Service, HMRC, said:

“This was one of the most sophisticated tobacco factories we have ever uncovered, and our work with our international partners to dismantle it will be a significant blow to the organised criminals we believe are behind it.

“The illicit tobacco trade steals money from our vital public services, undercuts legitimate businesses and can fund other crimes that impact our communities, such as guns, drugs and human trafficking. These criminals don’t care who they sell to, including children.

“We encourage anyone with information about the illegal sale of tobacco or alcohol to report it to HMRC online.”

Nine men have been arrested and investigations are ongoing.

Notes for editors

1. The total duty evaded on the tobacco was £3.3 million
2. The raid took place on 27 October 2022
3. The men were arrested on suspicion of fraudulent evasion of duty contrary to section 170(2) of the Customs and Excise Management Act (1979)
4. Follow HMRC’s Press Office on Twitter @HMRCpressoffice