British government not to apply tobacco-firm levy

The British government has decided not to go ahead with the imposition of a levy on tobacco manufacturers and importers, according to a Reuters News story.

In December, the government said it was considering introducing such a levy, which would have been based on market share.

It launched a consultation to gather views on the idea but now says the consultation has shown that the cost would simply be passed on to consumers.

‘Analysis of the responses shows that the impact of a tobacco levy on the tobacco market would be similar to a duty rise, with tobacco manufacturers and importers passing the levy onto consumer prices,’ the government was quoted as saying.

The government seems to have a complex relationship with its tobacco consultations. Whereas in this case, it seems to have been swayed by the consultation findings, it is widely believed that the consultation it conducted into standardized packaging lacked transparency.