§ Mr. Hordernasked the Chancellor of the Exchequer what would be the revenue if the rate of duty on tobacco were increased by 10 per cent.; and if he will estimate the effect on the retail prices index.
§ Mr. Bruce-GardyneThe extra revenue, including the additional receipts of VAT, from increasing the total duty 281W on tobacco products by 10 per cent. would be about £235 million in a full year. It is estimated that such a change would raise the retail prices index by about 0.3 per cent.