Finance Bill Tracking Service 2010 | Budget 2010


Who is likely to be affected?

1. Tobacco 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. Legislation will be introduced in Finance Bill 2010 to increase the rates of duty on tobacco products imported into, or manufactured in, the UK. The changes will represent an increase of 1 per cent, in real terms, on the current duty levels.

Operative date

3. The rate increase will have effect on and after 6pm on 24 March 2010.

Current law and proposed revisions

4. The rates of duty are:

•    cigarettes: an amount equal to 24 per cent of the retail price plus £119.03 per thousand cigarettes;

•    cigars: £180.28 per kilogram;

•    hand-rolling tobacco: £129.59 per kilogram; and

•    other smoking tobacco and chewing tobacco: £79.26 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 12 of the Finance Act 2009.

Further advice

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