§ Mr. Michael Brownasked the Chancellor of the Exchequer what change in Exchequer revenue would result from a reduction in tobacco duty of 20p on a packet of cigarettes and the equivalent on other forms of tobacco; and what change he would expect from a reduction in alcohol duty of 20p on a bottle of spirits.
§ Mr. Bruce-GardyneIt is estimated that duty reductions of 20p—with the consequential 3p reduction in VAT—on a packet of 20 cigarettes with the equivalent on other tobacco products and on a bottle of spirits would reduce the revenue by £850 million and £25 million, respectively, in a full year.
§ Mr. Michael Brownasked the Chancellor of the Exchequer how far subsequent alcohol and tobacco revenue receipts have met the estimates he made in the 1981 Budget and Finance Act.
§ Mr. Bruce-GardyneReceipts of the duties on alcoholic drinks in April and May were £306 million. I regret that, owing to industrial action, no later figures are yet available for these duties.
Receipts of tobacco products duty were £2,035 million, approximately, up to the end of November.