Anyone involved in selling or buying illicit cigarettes is helping fund serious criminals

Paul Boateng, Customs and Excise minister

The illegal trade is estimated to supply one in five cigarettes smoked in the UK, where demand is fuelled by higher taxes.

Earlier this year Customs and Excise said it believed Britain had become the biggest market in Europe for tobacco smuggling backed by organised crime rings.

Customs and Excise minister Paul Boateng unveiled the initiative at a north London newsagent on Friday.

He said: "Some of the UK's most organised criminal gangs are behind tobacco smuggling.

"These same gangs traffick cocaine, heroin and people.

"Anyone involved in selling or buying illicit cigarettes is helping fund these serious criminals.

"The UK duty paid mark will not only allow customs officers, but anyone buying or selling tobacco, to identify smuggled cigarettes more easily within the UK."

'Strong message'

Pishu Mukhy, who runs the newsagents at which Mr Boateng was speaking, said: "Our sales of cigarettes and particularly hand-rolling tobacco have dropped dramatically because of illicit tobacco selling in north London.

"I am pleased that the pack mark is now on the shelves.

"The new penalties send a strong message to all those dealing in this trade - that also goes for the owners of premises who allow sales to continue on their property."