BUDGET 2011 SPECIAL: The government must call time on ‘sin taxes’ 57% increase beer and 54% increase in cigarettes taxes since 1999 To arrange broadcast interviews or discuss this research, please contact: Daniel Hamilton, Director, Big Brother Watch Daniel.Hamilton@bigbrotherwatch.org.uk Mob (24 hrs): 07810 785 924 | Tel: 020 7340 6030
■ BEER TAXES The amount of tax levied on a pint of beer will increase to 41 pence. Since 1999, the amount of tax levied on a pint of beer has increased 57% (from 26 pence). ■ CIGARETTE TAXES The amount of tax levied on a packet of cigarettes will increase to £2.55. Since 1999, the amount of tax levied packet of cigarettes has increased 54% (from £1.65).
Daniel Hamilton of the civil liberties group Big Brother Watch which campaigns against government-imposed ‘sin taxes’ on alcohol and tobacco said: “Since 1999, tax on a pint of beer has increased 57%. The levy imposed on a 20 pack of cigarettes has gone up 54%. Someone drinking 7 pints of beer a week is paying around £58 a year more than they did in 1999, while the cost of smoking a packet of cigarettes has increased by around £327. “Drinking beer and smoking cigarettes is a matter of basic personal choice. People should have a right to enjoy these perfectly legal products without the nanny state seeking to tax their personal preferences out of existence. “People’s response to "sin taxes" is, generally, to sigh and pay them – the result isn't to drive down consumption, but to increase the government’s tax take. “It’s high time governments of all political persuasions stopped viewing smokers and drinkers as easy targets for unfair tax hikes.”
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BEER TAXES Average tax on a single pint of beer: £0.50 £0.45 £0.40 £0.35 £0.30 £0.25 £0.20 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Average yearly tax on beer (assuming an individual drinks 7 pints a week): £180.00 £170.00 £160.00 £150.00 £140.00 £130.00 £120.00 £110.00 £100.00 £90.00 £80.00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
55 Tufton Street, London SW1P 3QL www.bigbrotherwatch.org.uk ■ 020 7340 6030 (office hours) ■ 07810 785 924 (24 hours)
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Tax per pint £0.26 £0.26 £0.26 £0.26 £0.27 £0.28 £0.29 £0.29 £0.30 £0.36 £0.37 £0.38 £0.41
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Tax per year £92.82 £96.10 £96.10 £96.10 £98.64 £101.56 £104.10 £107.02 £110.66 £130.31 £132.86 £139.78 £150.70
CIGARETTE TAXES Average tax per 20-pack:
£2.70 £2.50 £2.30 £2.10 £1.90 £1.70 £1.50 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
55 Tufton Street, London SW1P 3QL www.bigbrotherwatch.org.uk ■ 020 7340 6030 (office hours) ■ 07810 785 924 (24 hours)
Average yearly tax on cigarettes (assuming an individual smokes seven 20-packs a week): £950.00 £900.00 £850.00 £800.00 £750.00 £700.00 £650.00 £600.00 £550.00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Tax per 20-pack £1.65 £1.81 £1.85 £1.89 £1.94 £2.00 £2.05 £2.10 £2.17 £2.24 £2.29 £2.38 £2.55
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Tax per year £601.33 £658.48 £671.58 £686.14 £705.43 £726.54 £745.47 £765.13 £790.97 £815.72 £832.10 £866.68 £928.20
SOURCE Institute for Fiscal Studies - 'Excise Duties: Alcohol, Petrol and Tobacco' http://www.ifs.org.uk/fiscalFacts/taxTables Office of National Statistics - Consumer price indices (February 2011) http://www.statistics.gov.uk/pdfdir/cpi0311.pdf
55 Tufton Street, London SW1P 3QL www.bigbrotherwatch.org.uk ■ 020 7340 6030 (office hours) ■ 07810 785 924 (24 hours)