June Budget – Tobacco Duty
The Government have introduced a change in the basis of duty calculation for long cigarettes i.e. those longer than 8 cm excluding any filter. Thenchange will amend the rules as they apply from 1 January 2011
Each additional 3 cm (or part thereof) in length of the cigarette will be treated as an additional cigarette for the purposes of specific duty calculation. For example a cigarette of 12 cm would be treated as three cigarettes.
The provision was introduced to ensure that UK legislation remains aligned with the relevant European Directive which has been amended to prevent tax avoidance.