A poll conducted by smokers’ rights group FOREST found that the overwhelming majority of Britons ( a majority of 62% !) find it “understandable” for others to seek cheep tobacco products from the black market, even if doing so is illegal to even collaborate with illicit product trafficking in the market, given heavy taxation resulting in disroportionately high prices of legitimate tobacco products.
While 62% find it “understandable” to be a customer of the black market for illegally untaxed and counterfeit tobacco, given a justification of heavy taxes, 22% do not and 16% don’t know. Not only illegally untaxed and contraband trade but also collaborating as a customer with goods trafficking in the market can be illegal as it reproduces the same consequence.
The poll was conducted by Yonder for FOREST preceding the budget announcement of the Chancellor in March, during which higher tobacco prices may be announced by 15% if the constant of 2% is added to current economic crisis inflation rates.
Meanwhile the war conducted against smoking comes as a lower priority in the government agenda according to most respondents ranking at popularity of 10% and only the war on alcohol is lower than that scoring at 9% popularity; obesity is at the same level having a level of 10% significance. High energy prices, the National Health Service, high inflation rates being over 10% and caring for the elderly all came before the war on smoking with degrees of significance of 54%, 48%, 40% and 32% respectively. Climate change, housing opportunities and the housing crisis and helping the private sector overcome the pandemic came next and above the war on smoking with popularity, 28%, 26% and 17% respectively.
But most respondents felt that overtaxing tobacco products was too high or was okay, according to 27% who found it okay and 38% who find it too high, while 20% find it too low and the remaining 15% have no particular opinion. This question can be answered objectively when considering the lowest price without any profit at which the product can be sold including the tax on it and the cost-price or the production cost. If the margin left for tax is more than twice the profit margin added to the production cost then it is disproportionate. But the poll for FOREST preceding the budget announcement by the Chancellor in March asked the sample for their prefered estimation.
The prime minister Rishi Sunak whilst Chancellor of the Exchequer during Boris Johnson’s government left tobacco tax and all other excise duty unaffected from inflation in 2021. Director of FOREST Simon Clark urges the Chancellor Jeremy Hunt to do the same now that inflation has reached and is fluctuating around the 10% level.
With only 20% (1 in 5 ) of respondents finding the tax on tobacco lower than what it should be, Simon Clark said “The Chancellor should freeze duty on tobacco and give smokers a break. Raising the tax on tobacco not only discriminates against poorer smokers, it will drive more consumers to the unregulated black market. This is bad news for legitimate retailers and bad news for the Treasury which could lose billions of pounds in revenue if more consumers buy their tobacco from illicit traders. Significantly, there is very little stigma attached to buying tobacco on the black market. In a cost of living crisis the public understands that many consumers will opt for the cheaper option, even if it’s illegal.”
However, if there is a thread of democracy left in the antismoking regime of this government the Chancellor should listen to what has been asked of him by numerous representatives and not follow one man’s path.
Bring Back Smoking Freedom 