I move:
(1) THAT in this Resolution–
"Act of 1977" means the Finance (Excise Duty on Tobacco Products) Act, 1977 (No. 32 of 1977);
"cigarettes", "cigars", "fine-cut tobacco for the rolling of cigarettes" and "smoking tobacco" have the same meanings as they have in the Act of 1977, as amended by section 86 of the Finance Act, 1997 (No. 22 of 1997).
(2) THAT the duty of excise on tobacco products imposed by section 2 of the Act of 1977, shall, in lieu of the several rates specified in Schedule 4 to the Finance Act, 2001 (No. 7 of 2001), be charged, levied and paid–
(a) as on and from 6 December 2001, at the several rates specified in Schedule 1 to this Resolution, and
(b) as on and from 1 January 2002, at the several rates specified in Schedule 2 to this Resolution.
(3) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
SCHEDULE 1
RATES OF EXCISE DUTY ON TOBACCO PRODUCTS
Description of Product |
Rate of Duty |
Cigarettes |
£85.21 per thousand together with an amount equal to 18.73 per cent of the price at which the cigarettes are sold by retail |
Cigars |
£129.242 per kilogram |
Fine-cut tobacco for the rolling of cigarettes |
£109.061 per kilogram |
Other smoking tobacco |
£89.663 per kilogram |
SCHEDULE 2
RATES OF EXCISE DUTY ON TOBACCO PRODUCTS
Description of Product |
Rate of Duty |
Cigarettes |
108.19 per thousand together with an amount equal to 18.73 per cent of the price at which the cigarettes are sold by retail |
Cigars |
164.103 per kilogram |
Fine-cut tobacco for the rolling of cigarettes |
138.478 per kilogram |
Other smoking tobacco |
113.848 per kilogram |
Resolution No. 3 provides for excise duty increases on tobacco products with effect from midnight tonight which, when VAT at 20% is included, amounts to an increase of 10p, or about 13 cent, on a packet of 20 cigarettes, with pro rata increases on other tobacco products. The increase is expected to yield £0.7 million, or 0.9 million, this year and £29.3 million, or 37.1 million, in a full year and to increase the CPI by an estimated 0.149%. It is expected that the increase in price will reduce projected consumption by 0.7% compared to what it would otherwise have been. The Government remains very concerned about smoking and its impact on health and the increase may help discourage smoking, particularly in younger people.