TaxCorporate TaxCigarette problems blamed on high taxes

Cigarette problems blamed on high taxes

The chief executive of the Tobacco Manufacturers' Association says the solution to the cigarette smuggling problem in the UK is to reduce the level of taxation placed on them.

Link: PAC slams cigarette company over lost taxes

Writing in today’s Financial Times Tim Lord said in a country like Spain, which has a much lower cigarette tax rate than Britain, just 2% of cigarettes smoked their had evaded duty.

In comparison, more than one-in-four cigarettes smoked in the UK are duty free, 7% bought legally across the border, and a massive 21% smuggled in.

‘The reason the UK’s level of smuggling is so high is that the Treasury has imposed excise duties so high that retail prices in the UK are the highest in the world,’ Lord said.

He claimed the solution, recommended by the TMA, was for the Treasury to cut the price of a pack of 20 cigarettes by £1 to return the gap between UK and other EU markets to pre-1997 levels.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

2m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

2m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

4m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

5m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

8m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter