Tobacco: Smuggling

Debate between Lord Palmer and Lord Sassoon

Thursday 26th April 2012 Lords Chamber

[Lord Sassoon]

My Lords, the strategy has many different strands. The Government issued a comprehensive tobacco smuggling strategy in April 2011. Specifically, £25 million of HMRC’s total expenditure on tax avoidance is going in this area. It has to be said that over the past decade, the illicit market in cigarettes has come down from 21 per cent of the market in 2000 to 10 per cent in 2009-10. As I am sure the noble Lord knows, very significant progress has been made, and the Government are fully committed to continuing with that. On the other side, there is the tobacco control plan to make smoking less affordable. The noble Lord, Lord Dubs, is quite right regularly to press on this. It is a multi-layered strategy, and the present Government will continue to press on all aspects of this challenge.

[Lord Palmer]

My Lords, is the noble Lord aware that if plain packaging is introduced, as is threatened, this will increase the amount of tobacco smuggled? I declare an interest as convenor of the Lords and Commons Cigar Club.

[Lord Sassoon]

My Lords, that is a helpful contribution to the consultation about plain packaging. These issues are all interrelated and we need to consider the second-order effects.

Taxation: Healthcare Insurance

Debate between Lord Palmer and Lord Sassoon

Thursday 9th June 2011 Lords Chamber

[Lord Sassoon]

I am grateful to my noble friend for allowing me to say again that we have absolutely no plans to introduce any such change to the benefit-in-kind rules or to the way in which private healthcare interrelates with the NHS.

[Lord Palmer]

My Lords, is that not a terrible shame? In order to ease the pressure on the National Health Service, would it not make sense, particularly for those who are self-employed, to allow their health insurance premiums to be offset against their income tax?

[Lord Sassoon]

As I have explained, to date I have seen no evidence that leads to that conclusion. The Treasury has done no detailed studies on the matter.

Air Passenger Duty

Debate between Lord Palmer and Lord Sassoon

Tuesday 11th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, I do not believe that the tourist industry will be either surprised or disappointed because I have merely restated that we are consulting a wide range of stakeholders and listening to views of the tourist organisations, among others. On UK competitiveness, it is important to see the APD in the wider context. For example, we do not levy the APD on transit or transfer passengers. As the noble Lord, Lord Borrie, points out, other countries are introducing similar taxes—Germany introduced a similar tax on 1 January. In the wider context of competitiveness, the Government are reducing corporation tax very significantly from 28 to 24 per cent over four years from April 2011. If we talk about competitiveness, we should look at it in a much wider context.

[Lord Palmer]

My Lords, can the Minister explain why those in private jets are not subject to APD? This might be a very good point for his consultation paper.

[Lord Sassoon]

My Lords, I am listening hard to points that are raised this afternoon. Although I cannot tell noble Lords where the consultation will get to, I am very happy to listen to points, including that made by the noble Lord.