Introduction Background Note
5.Smoking remains the greatest cause of preventable illness and premature death and the biggest cause of health inequality in the UK. Successive Governments have followed a policy of using tax to maintain the high price of tobacco and help reduce smoking, especially among the young.
6.Research has consistently shown that the price of cigarettes affects demand. Cigarette prices in the UK are at historically high levels.
7.This section increases quantity-based excise duty on all tobacco products at 2 per cent above current levels, thereby helping to maintain their real price, as well as maintaining their contribution to government revenues.
8.The section will increase the price of a packet of 20 cigarettes by 7p, a 25g pack of hand-rolling tobacco by 7p and a packet of small cigars by 3p.
9.The 2 per cent increase in tobacco duty is estimated to raise £60 million per year in duty and VAT revenues.