asked the Minister for Finance if he will state the increase that would have been obtained by the revenue on (1) a static consumption, (2) a fall of 1 per cent. in consumption, (3) a fall of 2 per cent. in consumption, and (4) a fall of 5 per cent. in consumption by a reduction of tobacco duty equivalent to one penny on the ordinary packet of twenty cigarettes in the years 1960/ 61 and 1961/62 respectively on the basis that it is (a) the first year in which such alteration was made, (b) the second year and (c) a year in which the full effect of the alteration was felt.
Written Answers. - Tobacco Duty.
92.
I presume the Deputy has in mind an increase in the tobacco duty rather than, as stated in the question, a reduction in the tobacco duty.
The following statement gives the particulars requested in respect of the year 1960/61:—
ESTIMATED variations in revenue which would have occurred in 1960-61 if the tobacco duty had been increased by the equivalent of one penny on the ordinary packet of 20 cigarettes.
|
If the actual net quantity retained for home use in 1960-61 |
Estimated amount of Increase (+) or Decrease (–) |
|
£ |
|
|
remained static |
+1,050,000 |
|
fell by 1% |
+ 750,000 |
|
,, ,, 2% |
+ 450,000 |
|
,, ,, 5% |
– 460,000 |
NOTES:
(1) The question does not indicate from what date the hypothetical increase in duty would have applied. The above figures are based on the assumption that the increase would have been operative for a full year.
(2) Particulars of consumption of tobacco are not available. The above figures are related to the net quantity retained for home use.
The corresponding particulars relating to the year 1961/62 are not yet available. If the Deputy puts down a question on the subject in about a week's time I expect then to be able to furnish the information requested.