§ Mr. Aspinwallasked the Chancellor of the Exchequer what is the level of tax on pipe tobacco in the United Kingdom; and how this compares with other European Community countries.
§ Mr. Bruce-GardyneThe tax on pipe tobacco in the United Kingdom consists of an excise duty of £24.95 per kilogramme together with 15 per cent. VAT on the duty inclusive price. The total taxation is about 66 per cent. of the typical retail price.
Some Community countries follow the same practice, while in others duty is levied as a percentage of the VAT inclusive retail selling price.
These differences in practice make it difficult to arrive at a precise comparison of the type which my hon. Friend has requested. But the following table contains details of the tax currently levied in each of the Community countries apart from Greece, where I regret that the relevant information is not available.
The available information is as follows:
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Rate of Excise Duty VAT (per cent.) Ireland 1. Cavendish/Negrohead:— £Irl. 38.406 per kg. 23 2. Hard-pressed tobacco:— £Irl. 24.561 per kg. 3. Other pipe tobacco:— £Irl. 30.874 Italy 56 per cent, of RSP 20 Luxembourg 31.50 percent. of RSP 5 Netherlands Where the retail selling price is per net kg. is:— NF1 44.50 or less 32.22 per cent. of RSP 14.12* NF1 44.51—49.50 36.42 per cent. of RSP Over NF1 49.50* 37.62 per cent, of RSP * Tax levied at the manufacturing stage, but charged on the tax-inclusive retail selling price.