![]() ![]() The table of duty rates on tobacco products is in Schedule 1 to the Tobacco Products Duty Act 1979 ( TPDA). The new tobacco duty rates will have effect from 6pm on 15 March 2023. It was also announced that the duty rate for HRT will rise by an additional 4%, to 6% above RPI inflation, and the MET by an additional 1%, to 3% above RPI inflation this year. Background to the measureĪs announced at Spring Budget 2023, the duty rate on all tobacco products will increase by the tobacco duty escalator of 2% above RPI inflation. This means that the total excise duty on a packet of cigarettes is the higher of either the usual application of duty, or the MET. ![]() The MET sets a minimum level of excise duty for any packet of cigarettes. The MET on cigarettes supports public health objectives and tackles the very cheapest cigarettes. In addition, increasing the duty rate on HRT and the Minimum Excise Tax ( MET) above the duty escalator will narrow the gap between HRT and cigarette duty rates and ensure the MET continues to be effective in the current market. The tobacco duty escalator, which increases duty in line with the Retail Price Index ( RPI) +2% at each Budget, was extended at Budget 2020 until the end of the current Parliament. This is an established tool to reduce smoking prevalence and ensure that tobacco duties continue to contribute to government revenues. The government is committed to maintaining high tobacco duty rates. This measure sets out how tobacco duties will increase on 15 March 2023. Tobacco products include cigarettes, cigars, hand-rolling tobacco ( HRT), other smoking tobacco and chewing tobacco, tobacco for heating and herbal smoking products. Manufacturers, importers, distributors, retailers and consumers of tobacco products. ![]()
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