Tobacco tax: what's it to be, Darling?
Wednesday, March 24, 2010 On top of everything else it's the Budget today. In the days when tobacco taxation used to rise by inflation plus three per cent (under Kenneth Clarke), then inflation plus five per cent (Gordon Brown), the Budget was one of our busiest days, media wise.
In recent years, with tobacco duty keeping pace with inflation but no more, it's not been much of a story so there has been very little to comment on.
Today ... well, it remains to be seen. If the Chancellor agrees with ASH and Policy Exchange and increases tobacco duty by five per cent, we might be in demand this afternoon.
I wouldn't bet against it (pre-Election Budgets are hard to call) but I would be surprised if the increase is as much as five per cent. Two or three per cent is more likely but I'm not Alistair Darling.
We'll know soon enough. Hard hats at the ready ...
Simon Clark
Tobacco duty up one per cent this year and two per cent each year thereafter - well short of the five per cent demanded by ASH and Policy Exchange.
Deborah Arnott and Henry Featherstone must be chocking on their lunchtime cider. (Note: cider up ten per cent above inflation.) Cheers!
Reader Comments (7)
I heard this morning it was 5p a packet.
Specky, I hope you are right as this is by no means the worst they can do. However much it turns out to be smokers will still be told that they are a drain on national resources.
While I welcome the low increase in tobacco duties it is only because so many are smuggled that the Chancellor did not put them up any more.
The duty rise on cider is a joke though. Just because it is the booze of choice for many alcoholics should not mean that everyone is penalised. Magners and Bulmers have spent fortunes trying to improve the image and taste of cider and this increase is only going to cost more jobs as drinkers switch to cheaper products. The apple farmers must be in despair and as for the alcoholics buying the extra strong stuff, it will make no difference. They get enough in benefits to buy the booze and anything they will be short will be begged or stolen to make up any shortfall.
Again the innocent and silent majority are made to suffer.
@Michael,
I think you come from Ireland and this is from 2003 too, the Real IRA were heavily involved in cigarette smuggling.
"A JOINT operation by gardai and British anti-terrorist police has smashed a Real IRA multi-million euro smuggling operation, it was revealed last night.
The renegade republicans planned to move their operational base for a massive cigarette smuggling scheme from the Border to a distribution warehouse in England."
"The raid followed another seizure of 9m cigarettes linked to the group in France last week and a further consignment of 3m recovered by local gardai in Tallanstown, Co Louth.
Cigarette smuggling is the group's main source of fundraising and senior gardai said last night that the series of seizures had delivered a major setback to the dissidents."
http://www.independent.ie/national-news/real-ira-cigarette-racket-smashed-in-swoop-191686.html
Not bothered my rollups say Fumar Puede Matar.
The spanish gov get my tax.
I doubt if the "HAG" Arnott and her "POODLE" Featherstone drink.
Or take salt for that matter.
But........
Watch out, this is an election budget.
Labour are trying to limit damage to their core vote here to a certain degree.
Expect more nastiness later if they get in which I doubt.
In fact after Byers, Hoon and "I can do it Hewittt" + Moran,they are in trouble,interesting to see the effect on the next poll.
Quadrouple wammy for them there.
So.... next bunch of despots if you please.
You are right Dave in that I am from Ireland and I attach a more recent link from October 2009. This was also believed to be Dissident Republicans who were involved although given the huge profits it could have been any criminal gang.
http://www.dailymail.co.uk/news/article-1223508/Biggest-haul-illegal-cigarettes-seized-en-route-Britain.html
Cigarettes in Ireland are now the equivalent of £8 per pack and the laws are as bad if not worse than the UK. Under these circumstances who can be blamed for buying illegal cigarettes regardless of the source. It is now accepted that Ireland consumes the highest percentage of smuggled and counterfeit cigarettes in the world.
Darling knows this and does not want to end up like inner city Dublin with Tab Houses and children selling door to door- regardless of what ASH and their ilk say.
Its ironic that Ireland once known as the 'world leaders' in bringing in the smoking ban to Europe are now known as the European Capital of cigarette smuggling!
With cigarette smuggling being the most profitable crime costing the exchequer 400million a year and where cigarette smoking has gone back up to 29% from 23% since the smoking ban.
Serves them right is what I say!