Table 5

Calculations of the potential increase in yearly UK tobacco tax revenues due to price-cap regulation

Optimistic scenarioConservative scenarioOptimistic scenarioConservative scenario
Reduction in profits due to regulation (£ million)834.2664.7782.5617.0
Implied reduction in corporate taxes at 28% (£ million)−233.6−186.1−219.1−172.8
Cost of Ofsmoke regulator (£ million)−15.0−45.0−15.0−45.0
Potential net increase in taxes (£ million)585.7433.6548.4399.2
  • Source: Authors’ calculations using various sources as outlined in the text.