Each cigarette earns the State 26p in tax

By RICHARD BROWNING FOR MAILONLINE
Updated:

 

The cost of smoking was dramatically hiked in yesterday's 2011 Budget. Chancellor George Osborne announced a reworking of the taxes on tobacco.

cigarettes

Every single cigarette is now taxed at 15.5p. There is a further tax of 16.5% on the retail price per packet and VAT is charged on top at the new rate of 20%.

Every cigarette nets the Government around 26p - and on a £6.50 packet of 20, the Government pockets around £5.20.

Duty on beer, wine and spirits were also increased in the Budget, by just over 7% now that the rise is linked to inflation, plus 2%.

From March 28 2011, the duty on every 75cl bottle of wine sold in the UK will be £1.81 - that's before VAT is added to overall retail price - including on to the duty.

Beer duty is 41p a pint and a staggering £7.15 of a each litre of whisky you buy is now duty - again both have VAT at 20% added to the retail price.

›› Now enter your drinking and smoking details to see how much of the national debt you're helping to clear.

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