Tobacco duties

The measure

The government has announced that duty rates on all tobacco products will increase by the Retail Price Index (RPI) + 2%. The rate on hand-rolling tobacco will increase by RPI + 6% and the minimum excise tax will increase by RPI + 3%. The Minimum Excise Tax (MET) will be increased by an additional 1% above the escalator, to 3% above RPI.  


Who will be affected?

Anyone manufacturing, importing, distributing, retailing or consuming tobacco products.


When will the measure come into effect?

The increase in duty has already been applied, having come into effect at 18:00 on 27 October 2021.

Our view

The implemented increases in duty rates are in line with increases in recent budgets and therefore are not surprising.