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The Tax man takes a look at cigarette duty

05 April, 2010

According to the tax man some smokers are avoiding tax by their choice of cigarette. It would seem that the duty paid on normal cigarettes is equivalent to duty paid on longer ones which HMRC sees as avoidance of tax.

According to a report in the Daily Telegraph, as from January 2011 any cigarette longer than 8cm, excluding the tip, will be treated as a separate cigarette and receive added duty,
Chancellor Darling announced that tobacco duty would increase by 1% above inflation and then by 2% each year until 2014. This effectively means that the price of a packet of 20 cigarettes will rise by 15p. This follows an 18p rise during the temporary VAT cut last year.

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