Excise duty on tobacco products
The measure
The new measures increase the excise duty on tobacco products. These changes represent an increase of 2% on current duty levels. This is equivalent to 7p on the price of a packet of cigarettes. Cigars, hand-rolling tobacco and other smoking and chewing tobacco will increase by a similar percentage.
Who will be affected
Manufacturers, importers of tobacco products, retailers and consumers.
When
The increase will take effect from 6pm on 22 April 2009.
For the last two years, there was an annual increase of 11p on the excise duty applicable to a packet of twenty cigarettes. These increases were in line with inflation. The Government states that it is committed to maintaining high rates of tobacco duty in recognition of the adverse impact of smoking on health. This year's comparatively modest increase suggests that the Chancellor has also taken into account the current economic situation and the encouragement that high duty rates will give to tobacco smugglers.
