Budget stipulated tax changes81–87 | Tax rates36 88 | Inflation: 12 month % changes*89 | |||||||
All tobacco | FM only | RYO only | FM | RYO | |||||
VAT† | Ad valorem | Specific | Specific | ||||||
% pack price | % pack price | £ per 1000 sticks | £ per kg | CPI | RPI | ||||
Budget enactment | |||||||||
22 April 2009 | 2% increase | 15.0 | 24.0 | 114.31 | 124.45 | 2.3 | −1.2 | ||
24 March 2010 | 1% above inflation‡ | 17.5 | 24.0 | 119.03 | 129.59 | 3.4 | 4.4 | ||
23 March 2011 | 2% above RPI | Ad valorem: 24%–16.5% Specific: 25% above RPI | +10% (total 12%) above RPI | 20.0 | 16.5 | 154.95 | 151.90 | 4.0 | 5.3 |
21 March 2012 | 5% above RPI | 20.0 | 16.5 | 167.41 | 164.11 | 3.5 | 3.6 | ||
20 March 2013 | 2% above RPI | 20.0 | 16.5 | 176.22 | 172.74 | 2.8 | 3.3 | ||
19 March 2014 | 2% above RPI§ | 20.0 | 16.5 | 184.10 | 180.46 | 1.6 | 2.5 | ||
18 March 2015 | 2% above RPI | 20.0 | 16.5 | 189.49 | 185.74 | 0.0 | 0.9 |
*Although the RPI (a measure of private household spending from survey data) is still employed in relation to tobacco taxation changes,90 it was de-designated as a national statistic in March 2013 (10) and replaced with the CPI which meets international standards and is comparable with other European countries.91 The RPI, unlike the CPI, includes housing costs, is more volatile than the CPI and rises more quickly.92
†VAT (a sales tax) changes did not occur on budget days.88 Changes occurred as follows: 01.01.2010 (17.5%), 04.01.2011 (20%).
‡2% above inflation for next 4 years.
§2% above inflation until end of next parliament.
CPI, Consumer Price Index; FM, factory made; RPI, Retail Price Index; RYO, roll your own; VAT, value added tax.