§ 4. Mr. Gowerasked the Chancellor of the Exchequer if, in view of medical opinion that cigar and pipe smoking may be considered less injurious to health than cigarette smoking, he will reduce the duty charged on cigars and pipe tobaccos.
§ The Economic Secretary to the Treasury (Mr. Maurice Macmillan)I will note this suggestion, but my right hon. Friend's predecessor explained in his Budget speech on 9th April, 1962, the practical difficulties in the way of adopting it.
§ Mr. GowerWhen my right hon. Friend is considering this, will my hon. Friend ask him to take note of the fact that the medical evidence indicates that it might be a positive gain if we could induce some cigarette smokers to change over to cigar or pipe smoking? Will my hon. Friend take account of the fact that in Holland, for example, there is so little duty on cigars and pipe tobaccos that it is more common to see people of all walks of life smoking cigars and pipes than it is here?
§ Mr. MacmillanI do not think that this is primarily a matter for the Chancellor of the Exchequer but rather for the Minister of Health on the general question of cigarette smoking. On the question of a differential, the experience of Denmark is that the higher tax on cigarettes has been imposed for the purposes of raising revenue and has been successful in doing this just because it 1160 has not resulted in reducing cigarette smoking.
§ Mr. LiptonDoes it not show a lack of faith in the success of Conservative economic policy when it is suggested that very special additional measures ought to be taken to persuade people to give up smoking cigarettes and to smoke cigars? Are we not all to smoke cigars if the Tories go on governing the country?
§ Mr. MacmillanI am happy to think so. But I think, on the contrary, that it shows the success of Conservative economic policy that even rising taxation will not discourage people, who have enough money, from spending it on cigarettes.