§ Mr. Deakinsasked the Chancellor of the Exchequer if his Department has made a study of the correlation between changes in the total taxation in cigarettes and changes in the volume of sales; and if he will make a statement.
§ Mr. BrookeIt is estimated that for a 1 per cent. increase in the total tax on cigarettes the price of cigarettes rises by about three-quarters of a percent and the volume of sales is about one-third of a percent lower than it would otherwise have been.
§ Mr. Deakinsasked the Chancellor of the Exchequer what proportion of the retail price of cigarettes is taken up by the tax, including duty, on tobacco.
§ Mr. BrookeDuty and value added tax together currently account for three quarters of the retail price of a typical packet of 20 cigarettes.