Anti-smoking groups have told MPs that the tobacco industry is likely to undermine tax increases which aim to discourage smoking. The Finance and Expenditure Select Committee is hearing submissions on a bill which implements the Government's excise increases announced in this year's budget.
Under the legislation, the excise tax will increase by 10 percent a year at the beginning of each of the next four years, in addition to the annual inflation-indexed increase. The of ASH director Ben Youden, told the committee on Wednesday morning that a factor they have to consider is the tobacco industry's ability to undermine excise increases with pricing strategies.
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