Table 3

Hypothetical example of RPI-X regulation as applied to a pack of 20 cigarettes in the UK market (prices in pounds sterling (£))

Current situationRPI-XRPI-X plus government response (ie, tax increase)
Taxes*4.24.24.6
Retailer take†0.40.40.4
Manufacturers take†0.90.50.5
Retail price5.55.15.5

  • ↵* Includes tobacco excise tax and VAT (sales tax).

  • ↵† Includes costs and profit.