Tobacco retailers blast Budget tax hike |
| Wednesday, 22 April 2009 | |||||||||||||||||||||
 Independent shopkeepers' group the Tobacco Retailers Alliance says it is disappointed at the Chancellor's Budget announcement that he will increase cigarette tax by 2%.The alliance fears the tax increase will boost the black market in tobacco and cause small shops to lose thousands of pounds. Ken Patel, a shopkeeper from Leicester and national spokesman for the group, said; "I'm disappointed that Mr Darling has increased the tax on tobacco, because this will only further boost the black market in tobacco which is already causing me to lose lots of business. "Now that we are in a recession, more and more smokers are looking to buy tobacco from the black market to save money, and shops are losing out on those sales. This is definitely not the time to be further increasing the retail price of tobacco. "The purpose of tax increases is to reduce the consumption of tobacco, but the more expensive tobacco becomes, the more likely it is that smokers will turn to the black market. The widespread availability of non-UK duty paid and counterfeit tobacco - usually sold at half the retail price - defeats the purpose of the tax rise policy." The Tobacco Retailers Alliance is a coalition of 26,000 independent retailers who all sell tobacco products. It is funded by the Tobacco Manufacturers' Association (TMA).
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Comments (5)
Allan Hammond
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... Is the TRA suggesting that we let criminals dictate government economic policy? If there's a problem with smuggling, you need to address it. Act at a national and international level to tackle criminal smuggling activity. What isn't acceptable is to use smuggling as an excuse not to regulate the retail tobacco trade. BTW - Mandini is absolutely right. The TRA aren't independent, they're a branch of Big Tobacco. |
Nicky
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... Mr Ken Patel is correct in what he says. The more tax they put on tobacco, the less tobacco that is purchased in the UK. This will affect small shops which in turn will put more out of business in these trying economic times. I am a smoker and have not purchased tobacco in this country for many years now. Why should I at these ridiculour prices when I can purchase it at half the price on the continent? Multiply that by the millions who are doing the same as me and I just wonder how much tax revenue the HMG is actually losing due to their uncompet*tive price of tobacco (not to mention how many jobs are beng lost as a result). |
Mandini
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... Yes,either way there will be less people buying tobacco from shops but given that the owners are mere legal drug sellers, selling a gateway drug this may not be a bad thing. PS How on earth can the alliance be described as independent when funded by the TMA ? |
soapy
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... The current policy pursued by Her Majesties' Govrnment will have dire consquences for the independant retailer,The 'corner shop' has been a staple of Britsh life since the days of Roman occupation. An inst*tution of both rural and country life that if lost will spell catastrophe for villages that are already bereft of post office and pub. This goes beyond smoking, even alcohol it is a matter of freedom of choice, of necessecity for those who cannot make a journy to a supermarket for whatever reason. The corner shop has never been just a shop, it's a meeting place, and like the pub or the post office one of the major hubs of the community, for that reason alone they are worth fighting to preserve. |
Judith Morris
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... I understand their dismay - but if they really do feel this strongly then its about time they did something and not just moan! Join UKIP and show this government that they cannot get away with ruining their businesses as well as all the pubs and clubs that have been closed due to this hate crime against smokers! Put your money where your mouth is - with 26,000 of you, you have the clout! |
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