Jersey tobacco duty to increase by 13.2 percent

Smokers will pay an additional 13.2 percent on tobacco products after a vote to raise duty in Jersey.

Smoking people will now have to pay 50p extra for a pack of cigarettes.

Cigarette duty

Tax on tobacco products

Jersey States have affirmed that the cost of cigarettes will increase starting with January.

As element of the budget discussion political figures decided to implement Senator Philip Ozouf’s strategy to put 50p to a pack of cigarettes.

On December 4 members decoded not to increase in fuel duty to hold it the same for the second year in a row.

Senator Ozouf initially intended a 10% tobacco duty boost but raised it after losing the fuel vote.

During the discussion, some, including Senator Sarah Ferguson, cautioned that raising tobacco duty could result in a decrease in the volume of tax taken as fewer cigarettes would be sold.

She said that level of increase would result in more people quit smoking.

Senator Ozouf said the motive for the considerable boost in duty on tobacco was to help reduce smoking rates.

He said: “The high price of tobacco in the Island has an importance in reducing tobacco use.”

The budget debate proceeded on December 5 in the States with the smoking people, drinkers and motorists set to be toughest hit.

Senator Sarah Ferguson intends to spend £56 million on some big projects in 2013 – such as a new primary school in St Martin and social housing refurbishments.

But to help finance them, he demands to increase some cash.

Smokers will be stricken- with tobacco duty fixed to increase, putting 50p on a pack of cigarettes.

Senator Ozouf intends to raise alcohol duty starting with January 2013, adding £1.05 on a litre of whisky, 13p on a bottle of wine and 4p on a pint.

But motorists won’t fall under new rule because the proposed increase of 3p was rejected.

First time customers would continue to gain profit from a decreased rate in stamp duty on properties priced at less than £450,000.

It indicates the highest pay will be £2,000 in property tax.

And people with low income would take advantage too.

Their duty free income is established to increase from £13,370 to £13,780.

And ultimately GST is established to remain at 5 percent and there are no intended changes to revenue tax.

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