TOBACCO TAXATION AND THE RETAILER

That this House urges Her Majesty's Government to recognise the plight of the United Kingdom's independent tobacco retailers whose businesses are already hard pressed by the impact of the recession; notes the threat to those retailers caused by continuing high levels of United Kingdom tobacco tax compared to European Community partners, which is already stimulating an upsurge in legal and illegal cross-border tobacco trading brought about by the single market; notes further that sales of tobacco account for nearly 40 per cent. of corner shop turnover and the same share of profits; acknowledges that corner shops are often the focus for local communities; and so asks Mr Chancellor of the Exchequer to help guarantee independent retailers' livelihoods by pressing for early harmonisation of tobacco taxes across the European Community based on a high level of specific taxation.