ASH's demand for tobacco levy goes up in smoke

For some time tobacco control campaigners have been calling for a tobacco levy to reduce smoking rates.

The policy was supported by Labour (naturally), prompting me to write:

If the party is elected back into government Labour has vowed to introduce a tobacco levy that will almost certainly be passed on to the consumer. Tobacco will become even more expensive and it doesn’t take a genius to predict the outcome – a flourishing black market driven by price.

See Message from our director (Forest).

Despite Labour's general election defeat anti-smoking campaigners were confident they could persuade the new Tory government to introduce the policy.

Last month, in response to a further demand by ASH at the launch of its latest report, Forest issued this press release:

Simon Clark, director of Forest, the smokers’ lobby group, said a tobacco levy would almost certainly be passed on to consumers and would hit those who can least afford a further increase in the price of tobacco.

He said, “A tobacco levy would probably lead to tobacco becoming even more expensive and would have the same result as raising the duty on tobacco.

“It will hit the elderly, the low paid and the unemployed hardest, and it will encourage criminals to flood the black market with cheap and sometimes counterfeit tobacco.

“That in turn will hit small convenience stores who will lose vital business.”

See also Tobacco levy, ASH and Forest's response (Taking Liberties).

Yesterday George Osborne rejected the idea of a levy because, according to Reuters, 'a consultation had shown the cost would simply be passed on to consumers.'

So fair play to George Osborne and the Treasury. Nice to see a little victory for common sense and consumer rights.

UK says will not introduce levy on tobacco manufacturers and importers (Reuters).