UK Dutty Tax on Tobacco

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jorgesoler

Can't Leave
Dec 3, 2014
401
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The law of demand states that there is an inverse relationship between quantity demand and its price, that is, all else being equal, as the price of a product increases, the quantity demanded falls, and as the price decreases, the quantity demanded increases. This table shows the mechanics of this law as the red line shifts to the right (demand) along the blue line (supply):
supplyanddemand_zps168adf15.png

An exception to this rule are both the so called Giffen and Veblen goods, but I shall not go into this topic, interesting though it is, to keep this post short and easy to read. As for this post, this trend clearly shows that the nanny state perspective does not work when it all comes down to lecturing the citizen. If the whole idea was to put people off smoking, one must conclude this policy is not working. According to the law of demand, we should have expected less people smoking as excise on tobacco increases year after year, but this is not what the charts show. In 2014, for instance, the UK Tax and Revenues Office was able to excise £12.3 billion on tobacco revenues, and it is a fact this trend has been increasing since 1990. Now, here is the thing. A tin of Royal Yacth, which is nothing but a staple, will set you back in the US some $10 as on average (I know this could be cheaper, but I will leave it at that) whereas in the UK the same tin will cost £12.80 (that is, 20 USD). So you want to know why I am a free market anarchist? Because I bloody hate state government. Sometimes I wish we could have friendlier laws like you all have in the US. You guys started a revolution against England when tax was at 3%. Now in the UK we pay 20% on VAT + other excises and duty tax (not only on tobacco) and everyone seems to believe this is perfectly fine. Well, I for one believe this is totally ridiculous and I think it is about time someone will put a stop to this.

 
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