As rolling tobacco overtakes silver in value per gram, Imperial Brands has called on retailers to ask MPs to rethink the tobacco excise rate.
The firm asked retailers to voice their concerns to MPs about how the high excise duty on tobacco could lead to an upsurge in theft and abuse against retailers, as well as fuelling the illicit trade.
Last November’s budget applied a Recommended Price Index (RPI) +12% excise rate on hand rolling tobacco products in the UK. The UK now has the highest excise duty in Europe – six times higher than in Spain, and five times higher than in Germany, according to the European Commission.
Andrew Malm, UK Market Manager for Imperial Brands, said:
“We now have a situation whereby hand rolling tobacco is more valuable per gram than silver, making local retailers and convenience store owners in the UK as much of a target to thieves as jewellery stores.
“Not only does this taxation drive UK consumer spending elsewhere – as, for example, a 30g pouch of rolling tobacco is now four times more expensive in the UK compared to Spain – but it also contributes to the issue of retail crime and illicit trade.
“This excessive excise duty will further incentivise organised criminal gangs to produce hand rolling tobacco illegally and sell the product through illicit channels here in the UK. Illicit trade is already a significant issue, and one which ultimately impacts on retailers and their revenue.
“As a responsible manufacturer, we will continue to engage with the Government to re-assess the current excise duty on these products as it poses a significant threat to retailers’ livelihoods and contributes to an already growing illicit market. We would also encourage retailers to reach out to their local MPs and councillors, ensuring that the issues their businesses are facing are highlighted and heard by relevant public officials.”
