The controversial cigarette pack date marking scheme will be ditched for a European style tax mark, according to industry sources. Crunch talks on the scheme were being held with Customs and Excise officials this week, with only a few days to go before recommendations are made to the Treasury ahead of next month's Budget. The tax stamps ­ used on continental Europe ­ are issued by the government to keep track on the number of cigarettes in circulation. It is also believed to be an alternative ­ and workable ­ solution to the problem of forestalling, where tobacco manufacturers, wholesalers and the multiple chains stock up on packs of cigarettes and sell them on at a higher margin after a Budget increase. The government could restrict the number of tax stamps in the months preceeding the Budget, cutting down on the level of stockpiled goods. It has also discussed reducing the duty paid on tobacco. A Treasury Committee report this week admits "the revenue collected from tobacco duty is being significantly undermined by smuggling". National Spokesman for the Tobacco Alliance Paul Mason said smuggling was costing the Exchequer £2.5bn in lost revenue. "The government must act now to address the booming black economy in tobacco. The most effective way of doing that is by cutting tax, taking away the financial invcentive to smuggle," he said. Introduction of the date mark has been fiercely opposed by the Federation of Wholesale Distributors, the Association of Convenience Stores and the Tobacco Alliance. FWD president Alan Toft said: "There would be huge problems in reversing the supply chain as retailers tried to return unsold cigarettes at the end of the date marking period." {{NEWS }}