BN72 : Tobacco Products Duty : Rates

Who is likely to be affected?

1. Manufacturers and importers of tobacco products (i.e. cigarettes, cigars, hand-rolling tobacco, other smoking tobacco and chewing tobacco).

General description of the measure

2. The rates of duty on tobacco products imported into, or manufactured in, the United Kingdom will be increased in line with inflation.

Operative date

3. The rate changes will have effect from 6pm on 21 March 2007.

Current law and proposed revisions

4. The new rates of duty are:

• Cigarettes: An amount equal to 22 per cent of the retail price plus £108.65 per thousand cigarettes
• Cigars: £158.24 per kilogram
• Hand-rolling tobacco: £113.74 per kilogram
• Other smoking tobacco and chewing tobacco: £69.57 per kilogram

5. An amendment will be made to the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979, as last substituted by section 1 of the Finance Act 2006.

Further advice

6. If you have any questions about this change, please contact the National Advice Service.