Tobacco duty and minimum excise tax

The measure

Duty rates on all tobacco products will increase by two percentage points above RPI inflation until the end of this Parliament. Hand rolling tobacco duty will increase by an additional one percentage point.

The minimum excise tax for cigarettes will rise to £293.95 per 1,000 cigarettes.

The general impact of the change in excise duty rates will mean that the price of:

  • a packet of 20 cigarettes will increase by approximately 33 pence;
  • a 30g packet of hand rolling tobacco will increase by approximately 48 pence;
  • 10g weight of cigars will increase by approximately 17 pence; and
  • a 30g packet of pipe tobacco will increase by approximately 22 pence.


Who will be affected?

Manufacturers, importers, distributors and consumers of tobacco.


When will the measure come into effect?

The general rate increases and minimum excise tax will come into effect from 6pm on 29 October 2018.

Our view

The increases are in line with expectations.