ACS: Tobacco Duty Increase Drives Consumers to Illicit Market

ACS (the Association of Convenience Stores) has warned that the Government increase in duty rates on tobacco products will drive more consumers to the illicit tobacco market.

Announced today (12th November) the duty rate on all tobacco products will increase by 2% above Retail Price Index (RPI), hand-rolling tobacco will rise by an additional 4%, to 6% and the Minimum Excise Tax by an additional 2%, to 4% above RPI inflation this year.

The increase will take effect from Monday 16th November 2020.

ACS chief executive James Lowman said: “We know that sharp increases in tobacco duty push consumers to the illicit market, and this is especially prevalent in the hand rolling tobacco market where the government have introduced 4% duty increase.

“The illicit trade in tobacco brings criminality into communities and is extremely damaging to legitimate retailers. We need more enforcement, not higher duty rates, to tackle this problem.”

In its 2020 Budget submission, ACS called for greater enforcement action against the illicit market, highlighting the link between duty increases and consumers turning to the illicit trade.