Calculations of the potential increase in yearly UK tobacco tax revenues due to price-cap regulation
| 2010 | 2009 | |||
|---|---|---|---|---|
| Optimistic scenario | Conservative scenario | Optimistic scenario | Conservative scenario | |
| Reduction in profits due to regulation (£ million) | 834.2 | 664.7 | 782.5 | 617.0 |
| 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) | 585.7 | 433.6 | 548.4 | 399.2 |
Source: Authors’ calculations using various sources as outlined in the text.