Back in the 1970s, a pack of 20 cost about 30 pence, and tax was a gentle 50%. Now it’s a fiscal cage match. Why? Because the government knows smokers are addicted revenue generators. Every puff pays for a school lunch or a roundabout. It’s a “sin tax” that’s become a comedy goldmine—people literally pay more to inhale burning leaves than to eat a full Sunday roast. The only thing more taxed is petrol, and at least you can drive on petrol without your teeth turning yellow.
“But isn’t it to discourage smoking?” you ask, sipping your latte. Sure, and I’m the Duke of Edinburgh. Smoking rates have indeed dropped—from 45% of adults in the 1970s to about 12% today. But the tax revenue? It’s still around £10 billion a year. That’s like trying to scare people away from a party by charging £100 a ticket, then being shocked when everyone pays and shows up anyway. The government is winning the battle of wallets, not health.
What Your £10.50 Actually Buys
Let’s get playful with that tax money. For the £10.50 you give up per pack, you could buy: three pints of decent lager, a cinema ticket with a large popcorn, or a month’s supply of nicotine patches (irony, anyone?). Every pack you don’t smoke saves you enough tax in a year to fly to Spain and back. You could trade coughing in the rain for coughing in the sun—on a budget airline, but still.
Or consider this: if you smoke a pack a day, you’re paying over £3,800 in tax annually. That’s more than the average council tax bill. You’re basically paying for the local bin collection with your own personal waste products. The council worker who empties your bin? He’s smoking on his break, funded by you. It’s a beautiful, tax-funded circle of life.
Tax incidence - Economics Help
