HC Deb 23 December 1981 vol 15 c435W
Mr. Michael Brown

asked 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-Gardyne

It 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 Brown

asked 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-Gardyne

Receipts 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.