Deputy pushes for bigger tobacco duty rise

Tuesday 15 November 2022

A Deputy is seeking to push planned tobacco duty rises even further next year in a move he says could generate an extra £456,000 for the public purse.

As part of its public health policy to discourage smoking, the Government applies yearly above-inflation rises to tobacco products.

Under spending plans for 2023-2026, which are due to be debated next month, Ministers proposed a 12.9% increase on tobacco products, 14.3% on hand-rolling tobacco and 15.9% on cigars in the Government Plan 2026.

If approved, the move would see the duty on a standard packet of 20 cigarettes rise by 97p.

However, Deputy Max Andrews is arguing that the Retail Price Index (RPI) figures used to calculate the increases are out-of-date. 

Pictured: Deputy Max Andrews.

He has now put forward an amendment to the Government Plan which, if approved, would instead see tobacco duty rise in line with RPI stats for the third quarter of this year.

“The negatives of tobacco consumption are well established and this amendment is in keeping with existing Government policy to increase duty on tobacco above RPI with the expectation to change consumer behaviour. As mentioned in the Government Plan 2023-26, the difference in duty charged on cigarettes and hand rolling tobacco will be closed in 2023 and this will continue under my proposition,” the Deputy argued in a report accompanying his proposal.

“It is anticipated that following my amendment the total tobacco revenue for 2023 would then be £19.483m, £456,000 higher than those originally proposed. I do not anticipate that there will be any additional manpower implications.”