Introduction Background Note
4.Smoking kills half of all long-term users and is the biggest single cause of inequalities in death rates between the richest and poorest in the UK. The government is committed to maintaining high tobacco duty rates to support health objectives and the public finances. Research has consistently shown that the price of tobacco products negatively affects demand.
5.This section increases the excise duty on all tobacco products by 2% above the rate of inflation (Retail Price Index). This is in accordance with the March 2014 announcement of increases of 2% above retail price inflation in 2015 for all tobacco duty rates.
6.The duty increase, together with consequential VAT, will on average increase the price of a packet of 20 cigarettes by 16p, a pack of 5 small cigars by 5p, a 25 gram pack of hand-rolling tobacco by 16p; and a 25 gram pack of pipe tobacco by 9p.