The Commons Treasury Committee has said that spirits smuggling costs £250m a year, in lost tax revenues and said it supports government plans to introduce a duty stamp on spirits bottles. In a report published this week, the committee said that alcohol fraud figures should be treated "with caution", as the true value of the loss could be as high as £650m. The report said the price of implementing a duty stamp scheme for the whole drinks industry was £7m, with a further £5m a year needed to keep the scheme running. The committee said this figure was not "disproportionate" given the size of the lost excise revenues each year. Michael Fallon, chairman of the committee, said: "The sums being lost every year are huge and it is clear that the current strategy is not working." The report concluded that, in total, alcohol and tobacco smuggling was costing the government £3.75bn a year in lost excise duty.