Tobacco - Excise duty increase
With effect from 6pm on 24 November 2008, the excise duty on cigarettes
is increased to 24% of retail price (up from 22%), plus £112.07 per thousand
cigarettes.
The duty on all other tobacco products is increased by 4%. As from 6pm on 24
November 2008, the effective rates will be:
- Hand-rolling tobacco: £122.01 per kilogram;
- Cigars: £169.74 per kilogram;
- Other smoking tobacco and chewing tobacco: £74.63 per kilogram.
Our view
These changes are intended to negate the 2.5% reduction in VAT from
17.5% to 15% on these products.