§ Mr. Parryasked the Chancellor of the Exchequer how much revenue has been raised on duty on cigarettes, cigars and pipe tobacco, respectively, in each of the past five years on an annual basis.
§ Mr. HayhoeThe information for excise duty is as follows:736W
Cigarettes £ million
Cigars £ million
Pipe tobacco* £ million
1979 2,224.6 68.3 65.0 1980 2,430.6 77.3 63.7 1981 2,819.9 96.5 74.6 1982 3,149.8 103.9 81.6 1983 3,343.5 107.8 79.2 * Includes other smoking and chewing tobacco liable to the same excise duty rate as pipe tobacco.
§ Mr. Parryasked the Chancellor of the Exchequer if he will list in the Official Report the price of cigarette, cigar and pipe tobacco in the European Economic Community and the level of duty imposed from information available to him; and how these figures compare with the United Kingdom.
§ Mr. Hayhoe[pursuant to his reply, 8 February 1984, c. 601]: The latest information available on the level of duty imposed on cigarette, cigar and pipe tobacco is set out below, together with the price of cigarettes in the most popular category in each country in the European Community. Information on prices of other cigarettes, cigars and pipe tobacco is not readily available and could be provided only at disproportionate cost. Conversions to sterling are at the the rate applicable on 2 February 1984.
A—Cigarettes Duty Specific £ per 1000
Ad Valorem per cent.
VAT per cent.
RSP £ per 1000
United Kingdom 21.67 21.00 15.0 56.50 Belgium 1.02 61.41 6.0 28.78 Denmark 35.32 21.68 22.0 73.15 France (a) 0.71 50.50* 33.3 17.85 (b) 0.31 10.00† Germany 14.33 31.50 14.0 45.65 Greece 0.78 50.16 ‡— 13.12 Ireland 23.12 15.39 23.0 55.64 Italy 0.22 54.79 20.0 27.04 Luxembourg 0.76 57.55 6.0 22.33 Netherlands 6.67 39.52 ║14.7 36.08 * 50.50 per cent. is the legal rate of duty for cigarettes in the most popular price category. It is deemed to include a specific element which is equivalent to 5/95 of the total tax chargeable on the cigarettes. The specific element calculated in this way, and the balance of the total tax chargeable expressed as a percentage of the RSP of cigarettes in the most popular price category, are then applied to all cigarettes. † Since 1 July 1983 a "health tax" has been payable in addition to the normal duty. It will rise in stages to 25 per cent. by 1 July 1985. Like the normal duty, it is deemed to consist of two elements: see note above. ‡ Greece has not yet introduced VAT. ║ The legal rate of VAT in the Netherlands is 14.7 per cent. of the RSP, but it is charged at the manufacturing stage only. Tobacco dealers (including retailers) are not liable for VAT in respect of sales of tobacco products.
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B Cigars Duty VAT per cent.
United Kingdom £40.85 per kg 15 Belgium (i) weighing 3 kg or more per 1000: 16.5 per cent. of RSP 19 (ii) other: 21 per cent. of RSP Denmark £0.0138p each + 10 per cent. of RSP 22 France (i) wrapped in natural tobacco: 25.8 per cent. of RSP 33⅓ (ii) wrapped in reconstituted tobacco: 29.80 per cent. of RSP
Duty VAT per cent.
Germany (i) weighing 3 kg or more per 1000: 14 per cent. of RSP 14 (ii) other: 17 per cent. of RSP Ireland £34.72p per kg 23 Italy* (i) weight of 3 gr each; made of natural tobacco: 12.95—22.5 per cent. 20 (ii) weight of 3 gr each; other: 46.28—47.58 per cent. (iii) weight of less than 3 gr each; made of natural tobacco: 12.95—22.59 per cent. (iv) weight of less than 3 gr each; other: 45.95—47.98 per cent. Luxembourg
C—Other Tobacco Type of Tobacco Rate of duty VAT per cent. United Kingdom (i) Hand-rolling tobacco £35.40 per kg 15 (ii) other smoking and chewing tobacco (including pipe tobacco) £24.95 per kg Belgium Smoking and dry chewing tobacco 31.5 per cent. of RSP 6 Denmark (i) sliced tobacco (cut-plug) granulated and similar tobacco, and also tobacco with a width of at least 1.5 mm £7.67 per kg 22 (ii) other smoking tobacco £31.58 per kg (iii) Facketed chewing tobacco* 39 per cent. of RSP (iv) Other chewing tobacco* 23 per cent. of RSP France (i) smoking tobacco 40.8 per cent. of RSP 33⅓ (ii) chewing tobacco 22.9 per cent. of RSP Germany (i) Fine-cut smoking tobacco (when more than 10 per cent. is less than 1.4 mm long or wide) £2.13 per kg +31.8 per cent. of RSP 14 (ii) other (over 90 per cent. at least 1.4 mm long and wide) £1.07 per kg +20.7per cent. of RSP (iii) Pipe tobacco containing only cut rolled stems £0.51 per kg (iv) Strand tobacco £1.14 per kg (v) Fine cut chewing tobacco £1.34 per kg (vi) Other chewing tobacco £0.17 per kg (vii) Unmanufactured tobacco and tobacco substitutes £2.23 per kg Ireland (i) Cavendish or negrohead £35.58 per kg 23 (ii) Hand pressed tobacco £22.75 per kg (iii) other pipe tobacco £28.60 per kg (iv) other smoking or chewing tobacco £29.71 per kg Italy Cut tobacco 54.4–57.1 per cent. of RSP† 20 Luxembourg Smoking tobacco and dry chewing tobacco 31.5 per cent. of RSP 6 Netherlands Pipe and dry chewing tobacco £2.09 per kg +26.1 per cent. of RSP║ 4.12‡ * In the case of both packeted chewing tobacco and other chewing tobacco in Denmark, the RSP is reduced by 18.03 per cent. before the rate of duty is applied. † In Italy the duty is charged as a fixed sum, but this varies according to the price band in which the tobacco falls. The table shows the highest and lowest effective rates of duty expressed as a percentage of RSP. ‡ The legal rate of VAT in the Netherlands is 4.12 per cent. of the RSP, but it is charged at the manufacturing stage only. Tobacco dealers (including retailer) are not liable for VAT in respect of sales of tobacco products. ║ This rate of duty became effective in the Netherlands on 1 January 1984. Before that date the duty was charged wholly on an ad-valorem basis; and during a transitional period from 1984 to 1986 products retailing at less than £12.85 per kg will continue to be taxed at the rate of 38.96 per cent. of the RSP. Information for duty rates in Greece is not available.
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Duty VAT per cent.
(i) weight of 3 kg or more per 1000: 11.5 per cent. of RSP 6 (ii) other: 16 per cent. of RSP Netherlands (i) weight of 3 kg or more per 1000: 2.96 per cent. of RSP †7.43 (ii) other: 8.22 per cent. of RSP †8.19 * In Italy the amount of duty is charged as a fixed sum, but this varies according to the price band in which the cigars fall. The table shows the highest and lowest effective rates of duty expressed as a percentage of RSP. † The legal rates of VAT in the Netherlands are 7.43 and 8.19 per cent. of the RSP, but they are charged at the manufacturing stage only; tobacco dealers (including retailers) are not liable for VAT in respect of sales of tobacco products. Information on duty rates for cigars in Greece is not available.