Tobacco: Taxation

(asked on 10th March 2016) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what estimate he has made of when the tax optimisation for cigarettes will be reached.


Answered by
Damian Hinds Portrait
Damian Hinds
Minister of State (Education)
This question was answered on 15th March 2016

The government believes that cigarette duty achieves a balance between its two fiscal goals on tobacco; to raise revenue and to protect public health.

In considering fiscal impacts of duties, the illicit trade is an important consideration. The government is committed to tackling illicit tobacco, which undermines health and tax policy objectives and harms legitimate business. HMRC and Border Force have an established and effective strategy for tackling tobacco fraud which has seen the illicit market reduce significantly since the strategy was first launched in 2000. This has meant that, since the introduction of the tobacco duty escalator, the size of the illicit market has continued to fall.

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