Budget 08: Alcohol and cigarette tax hikes
Drinking and smoking will become more expensive habits, the chancellor announced
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
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.