Oral question asked in the House of Lords, by Lord Dubs (Labour). It was answered on Thursday, 11 March 2010.

Tax Revenue: Cigarettes

Question: My Lords, I am grateful to my noble friend for that Answer. Does he agree that Britain’s policy for some years now of having a high rate of duty on cigarettes—probably higher than most other EU countries—has been based more on health considerations than on fiscal considerations? Does he further agree that the import of large quantities of cigarettes from the EU, without the ability of the Customs people to stop it, is damaging to health and is undermining the Government’s sensible policies on trying to reduce the level of smoking? Ought we not, as a country, approach the EU and say "Health is not a matter for Brussels; fiscal matters may be", and suggest that it should look again at the movement of cigarettes into this country?

Answer: My Lords, the response from Brussels is that border controls on imports are the responsibility of the United Kingdom. As I have indicated, we have had a marked improvement in the reduction of smuggling over the past 10 years. However, as my noble friend will readily appreciate, the higher we price cigarettes for the wholly commendable and proper reasons of improving the nation’s health and seeking to reduce consumption, the greater the incentive for smugglers.

Secondary information

Type: Oral question
Reference: 718 c335
Session: 2009-10
Oral question type: 1st Supplementary
Chamber / Committee: House of Lords chamber
Subjects: EU countries Health hazards Excise duties Imports Tobacco Tax rates and bands Smoking Smuggling Tax evasion Tax yields
Link: View this Oral question on www.publications.parliament.uk