Measure
Duty rates on all tobacco products will increase by 2% above RPI inflation. Rates on hand-rolling tobacco will increase by an additional 4% (i.e. RPI plus 6%).
The minimum excise tax (MET) applied on cigarettes will also increase by 3% above RPI inflation.
Manufacturers, importers, distributors, retailers and consumers of tobacco products.
Immediately. These changes will take effect from 6pm on 15 March 2023.
The increase in excise duty applied to tobacco products comes on the back of previous freezes applied since 2021.
The government has highlighted excise duty as an established tool in reducing the prevalence of smoking in the UK. This may result in a change of consumer behaviour, with individuals potentially looking to consume less or purchasing cheaper tobacco products.
This measure is expected to have a negligible impact on manufacturers and importers which are likely to pass on increased costs to consumers.