Finance Bill Tracking Service 2007 | Budget 2007 | Budget Notes

BN72 Tobacco Products Duty: rates

Who is likely to be affected?

1   Manufacturers and importers of tobacco products (i.e. cigarettes, cigars, hand-rolling tobacco, other smoking tobacco and chewing tobacco).

General description of the measure

2   The rates of duty on tobacco products imported into, or manufactured in, the United Kingdom will be increased in line with inflation.

Operative date

3   The rate changes will have effect from 6pm on 21 March 2007.

Current law and proposed revisions

4   The new rates of duty are:

•   Cigarettes: An amount equal to 22 per cent of the retail price plus 108.65 per thousand cigarettes.

•   Cigars: 158.24 per kilogram

•   Hand-rolling tobacco: 113.74 per kilogram

•   Other smoking tobacco and chewing tobacco: 69.57 per kilogram

5   An amendment will be made to the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979, as last substituted by section 1 of the Finance Act 2006.

Further advice

6   If you have any questions about this change, please contact the National Advice Service on 0845 010 9000. Information about Budget measures is available on the HM Revenue & Customs website at