Vape shops ‘smeared’ by government rhetoric, says trade body

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‘By continually using ‘vape shops’ as shorthand for problem businesses, the government risks smearing an entire legitimate retail sector,’ said UKVIA director general John Dunne

The government is “smearing an entire legitimate retail sector” by “continually using vape shops as shorthand for problem businesses,” according to the sector’s trade body.

UK Vaping Industry Association (UKVIA) director general John Dunne was reacting to HMRC’s call on Sunday for the public to report “firms breaking the law and blighting the high street, from vape shops to barbers”.

The government’s tax office has launched an “enforcement blitz” with an improved online service for the public to report “dodgy high street businesses”.

“Too many high streets have been blighted by dodgy shops that harm local communities and undercut honest businesses,” said Chancellor John Healey.

“If you see something that doesn’t look right, like suspected tax fraud or money laundering, use HMRC’s fraud reporting service and help protect our high streets.”

An HMRC spokesperson added: “The improved Report Tax Fraud service on Gov.UK makes it easier than ever to ‘shop’ high street businesses they suspect are involved in fraud, from vape shops to barber shops.”

Users who provide information that leads to the collection of £1.5m of additional tax can receive a reward of between 15% and 30% of the same amount.

Dunne said: “The UKVIA fully supports robust action against tax fraud, money laundering and businesses involved in criminal activity. Legitimate vape retailers have absolutely nothing to fear from properly targeted enforcement and, indeed, are among those most damaged by illegal operators who undercut responsible businesses.

“However, we are increasingly concerned by the government’s habit of repeatedly singling out vape shops in communications about ‘dodgy’ businesses, organised crime and the decline of our high streets.

“Over recent months, vape shops have been routinely grouped alongside businesses associated with money laundering, illegal working and other criminal activity, while separate government communications have suggested that vape shops make little positive contribution to their communities.

“By continually using ‘vape shops’ as shorthand for problem businesses, the government risks smearing an entire legitimate retail sector because of the activities of a criminal minority.”

The HMRC crackdown comes after PM Andy Burnham last month proposed raising business rates bills for vape shops by reviewing the relief available to them. Last week he also unveiled new measures to make it harder for vape shops to open by tightening up planning rules. Gambling and barber shops are also targeted among business Burnham said had “hollowed out” high streets.