§ Mr. AmosTo ask the Chancellor of the Exchequer what representations he has received in favour of(a) an increase in the taxation of tobacco products and (b) decreasing the taxation of tobacco products in his forthcoming Budget; if he will list them; and if he will make a statement.
§ Mrs. Gillian ShephardI have received many letters this year about the taxation of tobacco products. Those asking for a freeze outnumber those asking for an increase. I do not propose to list all those that have written. However, most of those asking for a freeze consist of small shopkeepers acting on a campaign organised by the Tobacco Alliance while the majority of those asking for an increase consist of various health organisations, regional health authorities and members of the public.
§ Mr. AmosTo ask the Chancellor of the Exchequer what was the yield, in current and in real terms, from tobacco tax in each of the last five years for which figures are available; what is the estimated yield for the current year; and if he will make a statement.
§ Mrs. Gillian ShephardFollowing is the available information:
£ million Tobacco Duty Receipts Estimates of VAT on Tobacco Expenditure At Current prices At 1989–90 prices At Current pices At 1989–90 prices 1985–86 4,459 5,470 920 1,130 1986–87 4,755 5,650 990 1,180 1987–88 4,767 5,450 1,000 1,150 1988–89 4,990 5,380 1,050 1,130 1989–90 5,035 5,035 1,080 1,080 The 1990 autumn statement forecast of receipts in current prices from tobacco duty for 1990–91 was £5.5 billion. Comparable forecasts for the other elements shown in the table are not available. The next estimate for the yield from tobacco duty in 1990–91 will be published in the Financial Statement and Budget Report.
§ Mr. AmosTo ask the Chancellor of the Exchequer what would be the effect on the retail prices index of raising the tax on a packet of 20 cigarettes by(a) 20p, (b) 32p and (c) 50p; and if he will make a statement.
§ Mrs. Gillian ShephardIf the increases in tax were fully reflected in cigarette prices the direct effects on the retail prices index would be approximately as follows:
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Increases in tax on 20 cigarettes Percentage points effect on RPI 20p +0.4 32p +0.6 50p +0.9
§ Mr. AmosTo ask the Chancellor of the Exchequer how much revenue would arise in a full financial year from raising the tax on a packet of 20 cigarettes by(a) 20p, (b) 32p and (c) 50p; and if he will make a statement.
§ Mrs. Gillian ShephardThe revenue yield from these tax increases can be estimated by using the tax revenue ready reckoner in table 4.7 of chapter 4 of the 1990 autumn statement.