EU Tax Comparison

  • Based on 2016 figures a typical pack of cigarettes costing £7.74 in the UK will cost just £3.27 in Spain and just £2.30 in Poland (1)

 

  • Germany charges total duty of £115.01 per 1,000 cigarettes and has an illicit market share of just 6% (2). The UK charges a much larger £260.62 and has an illicit market share of 13% (3).

 

  • The following chart is taken from the TMA’s Tobacco Tax Briefing which is available to download here

 

TMA_Taxation Briefing Sheet_EU Comparisons_2

  • Tobacco prices across the EU are driven by the respective taxes imposed within each of the member states

 

  • The UK has the highest rates of taxation in the EU which is reflected in the retail prices

 

  • Note that the price differentials between the UK and mainland Europe have widened due to the Government’s approach to tobacco tax policy. As a result the UK is attractive to organised crime groups who wish to import illegal tobacco into the UK and to travellers who wish to purchase legitimate tobacco products abroad and bring them back into the UK for personal consumption

 

  • The following chart illustrates the change in the weighted average price of a pack of 20 cigarettes since 2012. Click on the image to view the scrolling price changes.

 
TMA_20Cigs_Map_v5
 

  • The following chart illustrates the change in premium hand rolling tobacco prices since 2012. Click on the image to view the scrolling price changes.

 
TMA_RollYourOwn_Map_v4
 

  • The following chart illustrates the price of a premium pack of cigarette in 2017

 
TMA_Premium-Pack_Map_v4
 
(1) EU Commission, 2016, EXCISE DUTY TABLES Part III – Manufactured Tobacco;

(2) KPMG, 2016, Project Sun: A study of the Illicit Cigarette Market

(3) Measuring Tax Gaps, Tobacco tax gap estimates for 2015-16

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