Question to the HM Treasury:

To ask His Majesty's Government what consideration they have given to reducing or freezing tobacco excise duty to curtail the illicit and non-duty paid tobacco market, and to minimise the annual tax revenue loss from tobacco duty avoidance.

Tobacco duty aims to raise revenue and reduce harm to public health by discouraging smoking and raised £10bn in 2022/23. High duty rates, making tobacco less affordable, have helped reduce smoking prevalence with the percentage of adult smokers in the UK reducing from 26% in 2000 to 12% in 2023.

Strong enforcement is essential in tackling the illicit tobacco market and minimising the tax gap. HM Revenue and Customs (HMRC) and Border Force published a new illicit tobacco strategy in January 2024, ‘Stubbing Out the Problem)’. This set out the Government’s continued commitment to reduce the trade in illicit tobacco with a focus on reducing demand, and the disruption of organised crime groups behind the illicit tobacco trade.

The strategy is supported by £100 million of new ‘smokefree’ funding over the next 5 years which will boost existing HMRC and Border Force enforcement capability.