Question
Her Majesty's Government, in the light of the decision to introduce the Soft Drinks Industry Levy, whether they will review their decision in 2015 not to impose a levy on tobacco products; and if not, why not.
Answered on
24 July 2017
The government has no current plans to review the decision not to introduce a tobacco levy. A levy would complicate the tax system, impose an administrative burden on businesses and HMRC and would create uncertainty for businesses and consumers.
The government remains committed to its objectives on tobacco policy; to raise revenue and protect public health. Budget 2017 increased tobacco duty rates by 2% above RPI inflation. In addition, a Minimum Excise Tax of £5.37 on a pack of 20 cigarettes was introduced on 20 May 2017, alongside standardised packaging and the new Tobacco Products Directive.