Tory PPS Advocates for Tobacco Duty Cuts to Boost Treasury Revenue

Jack Rankin, the Parliamentary Private Secretary to the Tories, argued that the government should consider cuts to the tobacco duty rate. Rankin stated that the high tax rate encourages a surge in black-market cigarettes, which he estimated could represent between one-third and one-half of all cigarettes consumed. He suggested that this illicit market could lead to lost revenue for the Treasury ranging from £1.7 billion to £4.7 billion.

Rankin supported the idea that a Laffer-type argument applied to certain taxes, suggesting that the current rates were beyond the point of maximum revenue generation. The advocacy focused on how tax policy could be adjusted to maximize government intake from the tobacco market.