by dawson99 » Sat Jun 30, 2007 12:29 pm
Smoking is good news for the Treasury, with about £4.10 of the £5.50 cost of a packet of cigarettes taken in taxes.
Excluding VAT, this earned the Treasury more than £8bn in 2004-5, Ash says.
Treating diseases caused by smoking is costly, however. The campaign group says the NHS spends £1.5bn a year, including hospital admissions, GP consultations and prescriptions. There are further costs in the form of benefits.
It is thought that about 3,000 people are employed by the tobacco industry in the UK, which is home to three of the five biggest tobacco companies in the world.
While it has been suggested that the smoking ban will hit manufacturers hard, others point out that cigarette prices have already been put up to offset any fall in sales.
"Smokers will continue to choose to smoke," said Imperial Tobacco ahead of the ban.
imagine the tax raises if enough people quit tho!!!
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