Data released today show the amount smuggled into Britain "is out of control".
Legal tobacco sales fell 45.5% between 2021 and 2024 but the number of smokers dropped by just 0.5%.
The Institute of Economic Affairs said it indicated a rapid growth in black market tobacco sales.
Duty rose significantly in the three years to October 2024, with the minimum excise tax on cigarettes up by 39% and duty on hand-rolling tobacco soaring 76%.
Illicit
But the tax hikes have not led to increased revenue, even though the average pack of 20 now costs more than £15.
Cigarette duty revenue slumped by 20% with the overall tobacco tax take dropping from £10.4billion in 2021 to £8.4billion in 2024.
Dr Christopher Snowdon, from the IEA, said: "Official figures indicate a huge rise in illicit tobacco sales in the UK since 2021.
"The number of duty-paid cigarettes sold plummeted from 23.6 billion in 2021 to 13.2 billion in 2024, a decline of 44.4%. Sales of duty-paid hand-rolling tobacco dropped 47.6%. Overall, the number bought on the legal market fell by 45.5%.
"This unprecedented decline in legal tobacco sales occurred despite the number of smokers falling only modestly. Nor can th...
Legal tobacco sales fell 45.5% between 2021 and 2024 but the number of smokers dropped by just 0.5%.
The Institute of Economic Affairs said it indicated a rapid growth in black market tobacco sales.
Duty rose significantly in the three years to October 2024, with the minimum excise tax on cigarettes up by 39% and duty on hand-rolling tobacco soaring 76%.
Illicit
But the tax hikes have not led to increased revenue, even though the average pack of 20 now costs more than £15.
Cigarette duty revenue slumped by 20% with the overall tobacco tax take dropping from £10.4billion in 2021 to £8.4billion in 2024.
Dr Christopher Snowdon, from the IEA, said: "Official figures indicate a huge rise in illicit tobacco sales in the UK since 2021.
"The number of duty-paid cigarettes sold plummeted from 23.6 billion in 2021 to 13.2 billion in 2024, a decline of 44.4%. Sales of duty-paid hand-rolling tobacco dropped 47.6%. Overall, the number bought on the legal market fell by 45.5%.
"This unprecedented decline in legal tobacco sales occurred despite the number of smokers falling only modestly. Nor can th...
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Daily Express (Digital) - 1 Issue, March 17, 2025