Tax on cigarettes

[stoogmeister]

How much tax is put on an average pack of cigarettes (20) in the UK? How much money does the government make every year from the tax on cigarettes?

[Potatoman]

Enough that made me give up last year! A pack o' faaaaags overseas is only about �2? so that about �3, i reckon

[OBonio]

�2 overseas, but they'll probably be paying tax aswell. Probably more like �3.50 a packet. I heard a statistic once that the tax paid per annum on cigarettes is enough to pay for the entire NHS budget.

[stoogmeister]

I heard the same statistic myself. One of the reasons for my question. There was a plan to stop treating smokers who got cancer etc. but it was thrown out because of the tax money from cigarettes or so i heard. Wouldn't be very fair, would it!

[OBonio]

By the same standards they'd have to stop treating obesity side effects, sports injuries... car crash victims... they just like picking on smokers.

[dj_ajax]

The lowest i've seen a packet of 20 marlboro lights for example is 75p. Although this is with no duty added. Here the same packet is something around �4.52 so added duty and govt tax is around �3.77.

[pinus]

There are three taxes on cigarettes ad valorem tax at 22% of the retail price excise duty at �99.80 per 1000 cigarettes VAT @ 17.5% I don't buy cigarettes, but based on the �4.52 already mentioned, you get VAT 75p ad valorem duty 93p excise duty �2.00 That's �3.68 of tax on a basic cost of goods �1.32 It's a long time since I was involved in applying ad valorem rates on flat rate excise duties with VAT on top, so I might have made a mistake in dealing with the interaction of the taxes. I reckon I could be out by about 7p

[smudge]

Dunno, but as far as I'm concerned, all cigarettes, cigars & pipe tobacco should have 99% tax on them. They all pollute our lungs, so are of no use to anyone!

[stoogmeister]

Everyone seems to be guessing. Does anyone know the actual figures? Smudge, maybe there should be 99% tax on petrol as well seeing as cars (and other vehicles) pollute the atmosphere as well. How about a 99% tax on alcohol as well! And anything else that is bad for us!!! If all the smokers in the UK quit smoking the annual budget would be A LOT less. That's how much tax is put on cigarettes. So why don't you stop your whining!

[Hippy]

If Pinus is right in his calculations that makes the tax rate about 486%. That's better by far than the 99% postulated by Smudge. Chuck the wole lot of the filthy killer tobacco drugs away, I say.

[stoogmeister]

In 2001/2002 �9.5 billion came from the tax on tobacco products (according to a website). The cost of one pack (20) of the leading brand in the UK is 84% tax (excise duty plus VAT). In comparison: beer 29%, wine 51%, spirits 60%, unleaded petrol 74%. The UK tax on tobacco products is THE highest in the world. Hippy and Smudge, do you drink at all? Drive cars? Eat fatty food?

[Hippy]

Nope. No booze for me any more. Recovering alcoholic here.