When will the price of tobacco go up and how much will it cost?
SMOKERS will have to cough up more money after the price of tobacco was hiked.
The increase in tax was announced by Chancellor Jeremy Hunt in the Autumn Statement.
He told The House of Commons: “I am going to increase duty on hand-rolling tobacco by an additional 10% above the tobacco duty escalator.”
This means the rate will increase by the retail price index of inflation, 6.1%, plus 12%.
The Government is also hiking tax on all other tobacco products.
In his Autumn Statement Jeremy Hunt announced:
- The biggest ever price hike for tobacco products
- A major win for The Sun’s Save Our Sups campaign with alcohol duty frozen
- A major benefit change for renters on Universal Credit
- A £10,000 energy bill discount for Brits living near pylons
- A £192 income boost for self-employed workers
- A £470 payment boost for millions on Universal Credit
- Millions will be stripped of benefits under harsh new rules
- Nurses will save £500 in a personal income tax cut
- No fuel duty hike in huge relief for drivers
When will tobacco go up in price?
The rise on rolling tobacco will come into effect from 6pm tonight.
It comes after the government hiked prices on rolling tobacco by 10.1% plus an added 6% in the Spring Budget.
Meanwhile, rates on all tobacco products will rise by the RPI rate of 6.1% plus 2%.
Why is tobacco going up in price?
The price of cigarettes usually increases with inflation each year unless the Chancellor intervenes to freeze the rates.
This is what Rishi Sunak did in his Spring 2022 Budget, when he was Chancellor in Boris Johnson’s cabinet.
Taxing tobacco is a huge revenue-raiser for the government, with £10.7billion collected in 2022, which was 1.2% of the total tax take.
The tax is charged to companies making or importing cigarettes in the UK.
When the tax is raised, the cost is passed on to consumers who have to pay more for tobacco products in the shops.
Ministers are currently aiming to make Britain “smoke free” by 2030, meaning fewer than 5% of adults have the habit.
The hope is that the ever-increasing price will deter people from buying them.