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Budget 2008 - alcohol and tobacco

  • Published: Wednesday, 12 March 2008

The Chancellor announced a number of increases in duty on alcohol and tobacco

Alcohol

From Monday 17 March, alcohol duty rates will increase by 6 per cent above the rate of inflation.

Alcohol duties will increase by 2 per cent above the rate of inflation in each of the next four years.

Product

Effect of tax* on typical item (increase in pence)

Typical unit

Beer (4.2% abv)

4p

pint of beer

Wine

3p

175 ml glass

Wine

14p

75cl bottle

Sparkling wine

18p

75cl bottle

Spirits (37.5% abv)

55p

70cl bottle

Spirits-based ready to drinks

3p

275ml bottle

Cider

3p

litre

Sparkling cider

14p

75cl bottle



* Tax refers to duty, plus VAT

Tobacco

From 6.00 pm on 12 March 2008, tobacco duty rates will be:

Product

Duty

Effect of tax* on typical item (increase in pence)

Typical unit

Cigarettes

22 per cent of the retail price plus £112.07 per thousand cigarettes

11p

packet of 20

Cigars

£163.22 per kilogram

4p

packet of 5

Hand-rolling tobacco

£117.32 per kilogram

11p

25g

Other smoking tobacco and chewing tobacco

£71.76 per kilogram

6p

25g of pipe tobacco



* Tax refers to duty, plus VAT

This increases tobacco duty in line with inflation.

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