TOBACCO TAXATION,THE BUDGET AND THE SINGLE MARKET

That this House notes that the large cigarette taxation increase imposed in the 1991 Budget was twice that required to match inflation, and has added 0.4 per cent. to the annual rate of inflation; notes further the wide disparities in tobacco tax which exist in the European Community, whereby United Kingdom cigarettes are the second most heavily taxed and cost about double the price of those in France; expresses concern therefore that any future duty increases will further widen the gap between the United Kingdom and most of her European Community partners in the context of the completion of the Internal Market in 1993, so creating opportunities for smuggling which with increased personal duty paid allowances will lead to significant revenue losses; urges Mr Chancellor of the Exchequer to accept that any further increase in United Kingdom tobacco tax would have the most serious consequences for United Kingdom manufacturers and their employees, retailers and others in the tobacco trade; expresses the hope that in the light of these facts he will conclude that there should be no increase in tobacco duty in his next Budget, and that adequate control procedures are put in place to minimise revenue loss.