Budget 08: Alcohol and cigarette tax hikes

Drinking and smoking will become more expensive habits, the chancellor announced

Written by Joanne Christie

The government plans to make smokers and drinkers pay more in tax to fund their attempts to reduce poverty among children and pensioners.

Cigarettes will go up by an average of 11p per packet while cigars will increase by 4p.

Alcohol taxes will rise by 6% above the rate of inflation from this Sunday, and by 2% each year for the next four years.

The cost of a pint will increase by 4p, while a litre of cider will rise by 3p and a bottle of wine by 14p.

The cost of a bottle of spirits will rise by 55p per bottle, the first rise since 1996.

Smoking cessation products will continue to attract VAT concessions in order to encourage more people to stop smoking.

The extra taxes would be used to fund heating allowances to be paid to pensioners, as well as the government's attempts to reduce child poverty.

Advertisement

Enjoyed this article? Help spread the word:

Comments

White papers

Related jobs

More Accounting jobs

Spotlight

Management Consultancy Top 75

21st annual survey shows another £1bn on revenues

bryan clark, chief information officer at kpmg europe

Profile: Bryan Clark, chief information officer at KPMG Europe

Getting the right infrastructure is instrumental in consolidating KPMG’s European...

Apprentices, Arnie and Archos in the latest YP

September issue of Young Professional appraises the year for our...

Find your next job

Find your next job

Advertisement

Salary Checker

Newsletters

Sign up here for the very latest news delivered to your inbox. Choose from the following options:

Search white papers

Search white papers

Advertisement

Have your say

Should fair value accounting be suspended in the wake of the market crisis?
Yes, it's a big part of the problem
No, don't shoot the messenger

Job of the week

More finance jobs

Advertisement

Your next job