Advocates Push for Tobacco Windfall Tax and Annual Levy in the UK

Advocates Push for Tobacco Windfall Tax and Annual Levy in the UK

Doctors and health charities in the UK are urging Shadow Chancellor Rachel Reeves to implement significant financial penalties on tobacco firms, advocating for a windfall tax and an annual levy to support Labour’s anti-smoking campaign. The proposed measures include a one-time £74 million surcharge and a £700 million annual levy on the substantial profits of tobacco companies, which dominate 95% of the UK cigarette market and generate approximately £1 billion in profits annually.

Labour leader Keir Starmer has expressed readiness to take bold steps against smoking, the leading cause of preventable illness in the UK. The financial measures aim to fund expanded services to help smokers quit and alleviate the strain smoking places on the NHS, costing the country £17 billion annually due to lost productivity and healthcare expenses.

Hazel Cheeseman, chief executive of Action on Smoking and Health, highlighted the destructive impact of tobacco, stating, “Big tobacco makes absolutely obscene profits. It’s time to hit this lethal trade with a new double whammy of financial penalties.” The proposal is supported by a coalition of medical groups and health charities, including Cancer Research UK and the British Heart Foundation.

“Public support for the levy is strong, with a YouGov poll showing three in four voters in favour. The initiative aligns with Dr Javed Khan’s 2022 review, which proposed funding anti-smoking efforts through a levy on tobacco companies.

The goal is clear which is to make tobacco firms use their profits to help smokers quit and reduce the strain on the NHS, moving towards a healthier, smoke-free future.

As the UK government finalises its smoking and vaping bill, which may include further restrictions like outdoor smoking bans, the financial proposals are seen as a crucial step in reducing smoking rates, enhancing public health, and generating new government revenue.

Source: The Guardian

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