The price of a pack of cigarettes could top £16 in next week’s budget.
The Treasury is considering a dramatic increase in tobacco tax to ensure that the tax on cigarettes keeps smoking alternatives cheaper.
1
The price of a pack of cigarettes could hit a staggering £16 as Jeremy Hunt aims to introduce new taxes on gays in next week’s budgetCredit: Getty
Last year Jeremy Hunt added £1.55 to a pack of 20 cigarettes – and a similar increase is being considered for March 6.
The average price of a pack of 20 cigarettes is currently £14.39 – making Britain one of the most expensive places to smoke in Europe.
In France, cigarettes cost around £9 a pack, compared to £7 in the Netherlands and £6.50 in Germany.
The move comes as part of Rishi Sunak’s tough stance on smoking – with the prime minister known to be strongly anti-tobacco personally.
At a party conference last year, he revealed plans to ban smoking for anyone born after 2009 by raising the legal age for buying fags by one year each year.
And one-time numbers will be banned as part of the restrictive measures announced earlier this year.
Next month’s budget plans to introduce a new vape tax on imported e-cigarettes and manufacturers in a bid to make them inaccessible to children.
The duty will apply to liquids in vapes, with higher levels for products with more nicotine.
Sources say the additional tax hike on gays is designed to ensure that vaping continues to be a cheaper option for smokers.
The vape tax is modeled after European schemes, such as Germany, which introduced a duty of 1.60 euros for every 10 ml of vape liquid.
Autumn announcement: The price of rolling tobacco is rising again TONIGHT, which is a big blow to smokers, confirms Jeremy Hunt
The two new levies are likely to bring half a billion pounds into the coffers of the National Treasury.
But tobacco companies warned today that the skyrocketing price of fags is fueling illegal sales on the black market.
JTI UK’s Sarah Connor said: “Unreasonable tobacco taxes encourage the criminal sale of illegal tobacco, waste taxpayers’ money and fuel inflation.”
JTI research shows that a quarter of cigarettes and 38 per cent of roll-your-own tobacco sold in the UK are not taxed.
Christopher Snowdon, head of lifestyle economics at the Institute for Free Market Economic Affairs, said: “The government’s approach to encryption has become an incoherent mess.
“He says he wants to curb single-use vapes, yet he’ll tax e-cigarette refills.
“It’s giving away e-cigarettes for free with its Swap to Stop scheme, while making cigarettes less affordable for those willing to pay.
“He says he wants to reduce the tax burden, but he seems happy to tax smoking cessation.”
HMRC estimates that £9.3bn of tax revenue is lost to illegal tobacco sales.
Categories: Optical Illusion
Source: HIS Education