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Excise duty on tobacco

Excise duty rates on tobacco products are increased in line with inflation from 6pm on Budget day 21 March 2007. Including VAT, this is equivalent to 11p on the price of a packet of 20 cigarettes, and 4p on a packet of 5 cigars. Hand-rolling tobacco, and other smoking and chewing tobacco will similarly increase.
 

Our view
The Chancellor has not been persuaded by the health lobby to apply higher than inflation duty increases on tobacco this year.