Introduction Background
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.Pre-announced increases of 2 per cent above inflation on all tobacco product duties will be maintained in 2014/15.
6.The duty increase, together with the consequential VAT, will on average increase the price of a packet of 20 cigarettes by 26p, a pack of 5 small cigars by 9p, a 25 gram pack of hand-rolling tobacco by 26p; and a 25 gram pack of pipe tobacco by 14p.