Tax and tobacco
Monday, November 6, 2017 at 12:33
Simon Clark

The Autumn Budget is only two weeks away.

As you probably know the Chancellor has switched the Budget from spring to autumn. It means therefore that taxes on tobacco could rise twice this year.

A couple of weeks ago we published a short document that highlighted the way increases in tobacco duty discriminate unfairly against households on low incomes. (It's not rocket science but it still needs to be pointed out.)

This morning we published the results of a poll conducted last week on another Budget-inspired theme:

The survey, conducted by Populus for Forest, found that 76 per cent of adults think the current level of tax – over 80 per cent on an average packet of cigarettes in the UK – is either about right (44 per cent) or too high (32 per cent). Only 24 per cent (one in four) think it's too low.

A huge majority – 68 per cent – also said that buying illicit tobacco was an "understandable" response to the soaring cost of tobacco purchased legally. Only 22 per cent found it "not understandable".

Simon Clark, director of Forest, said: "Tobacco duty in the UK is exceptionally high compared to most other EU countries.

"Another tax hike will discriminate against the less well off and those who are just about managing.

"It will also encourage more smokers to buy tobacco on the black market because there isn't the stigma associated with other illicit transactions.

"We urge the Chancellor to give smokers a break, take public opinion into account and freeze tobacco duty at the current levels."

In a more pragmatic, less censorious world the government would reduce tobacco duty to a fairer level but it's unrealistic to think the Chancellor will succumb to common sense, hence our call for a tax freeze.

See Tobacco tax: give smokers a break, says Forest.

Inevitably the tobacco control industry takes a very different view and is calling for further tax hikes, but what really sticks in the throat are the crocodile tears concerning their position on illegal tobacco.

Take Fresh (formerly Smokefree North East). According to their website:

Illegal tobacco has helped over half of underage smokers in the North East get hooked on smoking, a new survey released today suggests.

55% of children aged 14 and 15 who smoke say they buy illegal tobacco from sources like "tab houses" and shops - while 73% say they have been offered illegal tobacco.

The figures, from the 2017 North East Illegal Tobacco Survey, are released as Fresh launches the new 'Keep It Out' campaign aimed at helping the public to spot illegal tobacco, report it and to encourage smokers not to buy it.

How hypocritical is that? If it wasn't for punitive taxation on tobacco, a policy Fresh supports, there wouldn't be a thriving black market in tobacco and there would be far less risk of children getting their hands on cigarettes.

But the group isn't content an increase in tobacco duty alone:

Fresh is calling on the Government to introduce a licensing system for tobacco manufacturers and retailers to provide funding for improved enforcement and other measures to reduce smoking prevalence. The measure would be popular in the North East with 76% of adults strongly in favour of businesses needing a valid licence to sell tobacco.

Aside from the fact that the cost of a licensing system would almost certainly be passed on to the consumer (forcing more smokers further into poverty or towards the black market), what could Fresh possibly mean by "other measures"?

My guess is that "other measures" include more funding for parasitic groups like Fresh because that's the Kafkaesque world we live in.

More funding means more campaigns like 'Keep It Out' in which a tobacco control group 'helps' the public "to spot illegal tobacco, report it and encourage smokers not to buy it" while lobbing government to increase taxes that inevitably push consumers towards the black market.

Wilfully ignorant or in denial about the irony of their position, Fresh declares:

As well as helping children to start smoking, people supplying illegal tobacco are often involved in drugs or loan sharking. Buying it means supporting crime and can bring children into contact with criminals.

For crying out loud! Punitive taxation drives illicit trade. How hard is that to understand? If there's a single group that's supporting crime and bringing children into contact with criminals it's tobacco control campaigners and their counter-productive policy on tax.

See Illegal tobacco bought by more than half of teenage smokers (Fresh).

Article originally appeared on Simon Clark (http://taking-liberties.squarespace.com/).
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