Imperial Brands calls for a rethink on tobacco excise rate to protect retailers

In response to recent reports that rolling tobacco is now more valuable per gram than some precious metals such as silver, Imperial Brands is encouraging retailers to ask their local MP to rethink excessive levels of excise applied to tobacco products to avoid an upsurge in crime and abuse against retailers.

Last November’s budget applied a Recommended Price Index (RPI) + 12% excise rate on hand rolling tobacco products in the UK. The UK now has the highest excise duty in Europe – six times higher than in Spain, and five times higher than in Germany.

Andrew Malm, UK market manager, said: “We have a situation whereby hand rolling tobacco is more valuable per gram than silver, making local retailers and convenience store owners in the UK as much of a target to thieves as jewellery stores.

“Not only does this taxation drive UK consumer spending elsewhere – as, for example, a 30g pouch of rolling tobacco is now four times more expensive in the UK compared to Spain – it also contributes to retail crime and the illicit trade.

“This duty will further incentivise organised criminal gangs to produce hand rolling tobacco illegally and sell the product through illicit channels here in the UK. Illicit trade is already a significant issue, and one which ultimately impacts on retailers and their revenue.

“As a responsible manufacturer, we’ll continue to engage with the Government to re-assess the current excise duty on these products as it poses a significant threat to retailers’ livelihoods and contributes to an already growing illicit market. We’d also encourage retailers to reach out to their local MPs and councillors, ensuring the issues their businesses are facing are highlighted and heard by relevant public officials.”