One in five smokers is already buying from the black market. Bad news for those Treasury coffers…
The Tobacco Manufacturers’ Association, the trade association for the UK tobacco industry, has just published a survey of 6,000 UK smokers this morning. It found that 20% of them buy illicit tobacco every week – the highest proportion in London. Tax receipts from tobacco products are dropping at rates of up to a £1 billion each year…
A large 12% of respondents say they bought the “Manchester” brand of cigarettes which is manufactured in Dubai basically entirely for distribution and sale in illegal channels controlled by gangs. One in two said they had no issue buying illegal cigarettes off someone they knew…
Reform’s Lee Anderson told Guido:
“Labour’s war on fun is fast becoming a war on Britain’s high streets. One in five smokers are now lining the pockets of crime bosses instead of local shops, fuelling human trafficking, money-laundering and dodgy businesses in our towns. It’s obvious jacking up taxes only reduce tax revenue and won’t stop smoking. So why is Labour planning to ratchet tobacco duty up even more? Even before the Budget, Rachel Reeves is proving she’s all tax, no common sense.”
54% of the 6,000 said tobacco prices tempt them to buy cheap illegal tobacco or products from abroad and one third say they already know of premises selling cigarettes illegally. The Government’s long-standing tobacco duty escalator pushes tobacco prices up by 2% above inflation every year. Last time around the Treasury only brought in £8.8 billion from the duty compared to the OBR’s £11.4 billion forecast – down 12% on the previous year. Tobacco enjoyers have had enough…
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