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The duty gap (the amount of tax revenue lost due to the illicit trade) is estimated to be 13.8% of theoretical duty liabilities, or 1.4 billion in lost duty plus an additional 400m in VAT.[1] While ASH would still like to see rates of illicit tobacco fall further the progress made over the last 20 years has been significant with rates at 21.7% in 2006/7

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