Revenue Duties (Hansard, 31 January 1980)

§ Mr. Hordern
asked the Chancellor of the Exchequer what revenue would be gained or lost if duties on beer, tobacco, spirits and hydrocarbon fuels took up the

Duty Increase in revenue in a full year (£ million) Rate to achieve the full year increase in revenue(£)

Beer … … … … 70 14.14(per hectoliter at 1,037 degrees of gravity)

Tobacco—

(a) Cigarettes … … 235 21 per cent. of the retail price+13.88^* (per thousand)

(b) Cigars … … … 24.06 (per kilogram)

(c) Hand-rolling tobacco … 23.30 (per kilogram)

(d) Other tobacco … … 18.49 (per kilogram)

Spirits … … … … 10 10.98(per litre of alcohol)

Hydrocarbon oil‡—

(a) petrol … … … 310 0.095 (per litre)

(b) Rateable oil … … 50 0.008 (per litre)

^* Estimated on the assumption that the ad valorem duty is unchanged.

† The figure given applies to mature spirits.

‡ Excludes derv, which is not covered by the retail prices index.

§ Kerosene is charged at a lower rate.

772W
security contributions and child benefits, or equivalent.

§ Mr. peter Rees
The information requested is given in the table below:
same proportion of the retail price index as they did after the Budget in 1974; and what the respective rates of duty would be.

§ Mr. Peter Rees
The information is:
773W

§ Mr. Hooley
asked the Chancellor of the Exchequer if he will list in the Official Report the retail price, including tax, of a packet of 20 cigarettes, a pint of beer and a bottle of whisky, as at January 1974, 1976, 1978 and 1980 converted to 1979 outturn prices.

£ 1979 prices

Jan 1974 Jan 1976 Jan 1978 Dec 1979

Cigarettes—20 filter tip … 0.60 0.64 0.65 0.62

Beer—1 pint … … 0.29 0.32 0.32 0.32

Whisky—1 bottle … … 6.15 5.89 5.13 4.39

Note:

The calculations involve a degree of approximation. Moreover, no allowances have been made for changes in quality over the period. Interpretation of the data should take those qualifications into account. The beer price relates to one pint of bitter in a public bar.

§ Mr. Hordern
asked the Chancellor of the Exchequer when was the last substantive increase in the specific duties on tobacco and alcoholic drinks; what increase would currently be required to restore them in real terms to those levels; how much additional revenue would be

Duty increase per cent. Full year revenue yield (£ million) Increase in retail price of typical item

Tobacco … … … 33 430 Up to 11½p per packet of 20 king size cigarettes

Beer … … … 39 350 3½p per pint

Spirits … … … 39 30 £1.40 per bottle of whisky

Wine … … … 39 90 22p per bottle of table wine

Duty	Increase in revenue in a full year (£ million)	Rate to achieve the full year increase in revenue(£)
Beer	…	…	…	…	70	14.14(per hectoliter at 1,037 degrees of gravity)
Tobacco—
(a) Cigarettes	…	…	235	21 per cent. of the retail price+13.88^* (per thousand)
(b) Cigars	…	…	…	24.06 (per kilogram)
(c) Hand-rolling tobacco	…	23.30 (per kilogram)
(d) Other tobacco	…	…	18.49 (per kilogram)
Spirits	…	…	…	…	10	10.98(per litre of alcohol)
Hydrocarbon oil‡—
(a) petrol	…	…	…	310	0.095 (per litre)
(b) Rateable oil	…	…	50	0.008 (per litre)
^* Estimated on the assumption that the ad valorem duty is unchanged.
† The figure given applies to mature spirits.
‡ Excludes derv, which is not covered by the retail prices index.
§ Kerosene is charged at a lower rate.

			£ 1979 prices
			Jan 1974	Jan 1976	Jan 1978	Dec 1979
Cigarettes—20 filter tip	…	0.60	0.64	0.65	0.62
Beer—1 pint	…	…	0.29	0.32	0.32	0.32
Whisky—1 bottle	…	…	6.15	5.89	5.13	4.39
Note:
The calculations involve a degree of approximation. Moreover, no allowances have been made for changes in quality over the period. Interpretation of the data should take those qualifications into account. The beer price relates to one pint of bitter in a public bar.

				Duty increase per cent.	Full year revenue yield (£ million)	Increase in retail price of typical item
Tobacco	…	…	…	33	430	Up to 11½p per packet of 20 king size cigarettes
Beer	…	…	…	39	350	3½p per pint
Spirits	…	…	…	39	30	£1.40 per bottle of whisky
Wine	…	…	…	39	90	22p per bottle of table wine