Chancellor Jeremy Hunt is set to raise tobacco duty next month which could see the price of cigarettes going up by GBP 1.15, reports The Sun.

Smokers could be facing the biggest price increase on packs of cigarettes as Chancellor Jeremy Hunt is expected to raise tobacco duty in the 15 March Budget. Industry insiders have said that a pack of 20 cigarettes could cost up to GBP 1.15 more after the increase whereas a 30g pack of hand rolling tobacco could rise by GBP 2, reports The Sun.
The prospect has been met with critical response with even the Action on Smoking and Health group urging the Chancellor to increase the duty by 5.4 per cent in line with earnings rather than sky-high inflation. On average, a pack of 20 kingsize filters costs GBP 12.84, according to ONS and fears are high that making cigarettes even more expensive would fuel the black market.
Tobacco tax usually increases with inflation every year unless the Chancellor freezes the rates. It is a big revenue earner for the government, bringing in GBP 10.7billion – 1.2 per cent of the total tax take last year, according to The Sun.
Benjamin Elks, operation manager at the TaxPayers’ Alliance said: “Smokers already pay vast sums to the Treasury. Tobacco taxes are high enough, without yet another damaging increase. The government should freeze tobacco duty.”