SMOKERS face the biggest ever price hike in fags next month as Jeremy Hunt prepares to raise tobacco duty – with a pack of 20 going up by £1.15.
Industry insiders are bracing for taxes on cigarettes to increase with inflation at the March 15 Budget in a blow to puff-partial Brits.
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Hiking fag levies with 12.7 per cent RPI – plus an extra minimum 2 per cent bump applied to tobacco products – means a pack would jump by more than 15 per cent.
It would see a 30g pack of hand rolling tobacco rise by £2 thanks to higher rates.
Even the Action on Smoking and Health group urged the Chancellor to increase the duty by 5.4 per cent in line with earnings rather than sky-high inflation.
Sources fear this would fuel the growing black market of smoking products which is believed to have cost the Treasury £51.3billion.
Fag duty is 16.5 per cent of the retail price plus an extra £5.26 on a packet of 20.
It usually increases with inflation each year unless the Chancellor intervenes to freeze the rates.
Taxing tobacco is a huge revenue-raiser for the Government, last year clawing in £10.7billion – 1.2 per cent of the total tax take.
Ministers are currently aiming to make Britain “smoke free” by 2030, meaning fewer than 5 per cent of adults have the habit.
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A Government-commissioned review recommended nannying policies including upping the smoking age by one year every year.
Benjamin Elks, operation manager at the TaxPayers’ Alliance said: “Smokers already pay vast sums to the Treasury.
“Tobacco taxes are high enough, without yet another damaging increase. The government should freeze tobacco duty.”
