Duty on tobacco to increase +2% above Retail Price Index, plus a new Minimum Excise Tax announced.
Following the Chancellor Philip Hammond’s Budget 2017 on 8th March, the key outcomes relating to tobacco were as follows:
Factory Made Cigarettes (FMC)
- Duty was increased to 2% above Retail Price Index (RPI), which equates to a 35p increase on a pack of 20 cigarettes.
Fine Cut Tobacco (FCT)
- Duty was also increased to 2% above RPI, which equates to a 42p increase on a 30g pack of rolling tobacco.
Minimum Excise Tax (MET)
- The Chancellor also announced the new Minimum Excise Tax (MET). An MET works by establishing a minimum level of excise duty on a packet of cigarettes, based on a pack price of £7.35. The MET is applicable to cigarettes only – not roll your own tobacco.
A new recommended retail price list for Imperial Tobacco’s brand portfolio, effective from 6pm, will be available to download from the ‘Product & Price Lists’ section of this website later this evening.
Additionally, we will also update the prices available on MyTobaccoPriceList.co.uk which is a free to use service to help create your own text and picture price lists.
For the avoidance of doubt, retailers are free at all times to determine the selling price of their products