Autumn Statement 2016 calls for tobacco tax duty scrap that could help stop cheap cigarette prices

SMOKERS could get a boost in the Autumn Statement today if Philip Hammond listens to calls to scrap a tax that hits the poorest hardest.

The Minimum Excise Tax proposed by the ex-Chancellor George Osborne in the last Budget.

It sets a minimum rate of tax on fags and means cheaper brands have to hike their prices, but premium brand cigarettes unaffected.

Newsagents up and down the country have been urging the Chancellor to ditch the hike during today’s Autumn Statement.

Jayesh Patel from Classic News in Northampton told The Sun earlier this week: “Most of our customers only have a small amount of disposable income and I know many of them who smoke are often tempted to turn to the black market for tobacco given the high prices they face in shops.

“Introducing a Minimum Excise Tax for tobacco will only drive more customers away from our shops and to the criminals who run the black market.”

Cigarette prices in the UK are already among the highest in Europe due to taxation and it was estimated that at least £5 billion illegal cigarettes were smoked in the UK last year.

Earlier this week, The Treasury refused to speculate on what the Chancellor might have up his sleeve ahead of today’s statement.

The Autumn Statement will be Chancellor Philip Hammond’s first since taking over the job from George Osborne, after he lost his job when Theresa May became Prime Minister.

Duty on alcohol could also be frozen again today if insiders get their wish.

Earlier this year George Osborne froze the duty rates on beer, spirits and most ciders. However, most wines and higher strength sparkling cider went up, by around 4p, in March.

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