Written on June 15, 2010 at 8:38 am by Glo0

The State of Play

Filed under Industry News, Product News, Tobacco News {no comments}

Here in the UK we have a heavily taxed tobacco industry. 77% of price of your cigarettes is taxes (Duty & VAT), retailer make very little. June 22nd sees our new government announce the “Emergency Budget”, which is not only going to kill our entire public sector but there probably going to the norm and increase duty for Fuel, Tobacco & Alcohol. This year has already seen a 2.5% increase in VAT (Reduced to increase spending) and the Budget in April. With many people expecting a vat Increase of another 2.5% combined with a second hike could see prices climb 30p+ for a 20 pack of cigarettes and similar increase to single cigars. We sit and dread the day the rather odd looking George Osborne announce the Budget.

As well the taxes and imminent increases in costs, we are still awaiting to here what our new government is going to do with the proposed “Tobacco Display Ban”. This plan to stop people from taking up the FILTHY DIRTY DISGUSTING ADDICTION to smoke. By making it a lot like, buying an adult magazine. In seedy shops with frosted windows and hidden from view everywhere else. The UK has about 40-50 specialist tobacconist every other retailer (Shop, Supermarket, Petrol Station & Pubs/Bars) will have to hide their stock.  Not only hide it from view, but also rules on sizes of tobacco cupboards, rules on how long the cupboard can be open for. But not to worry we will still be allowed to have a price list (single not plural). Even the size of the price list is up for legislation, plans are for 1 side of A4 and A3 for big stockists. Ha my pipe tobacco list is 4 sides of A4, and single cigars & small packs are 6 sides and my box list, well I call it a book.

The exemption for specialists isn’t set in stone either. NHS trusts appose the exemption, this wouldn’t be so bad BUT each county has there own NHS Trust so they get A LOT OF VOICES. Along with ASH which again use regional offices to have there many voices heard. Then there’s the Supermarkets, these big gredy monsters are not only happy to take over the empty units in town/city centres they also want others to suffer the same wrath as them. After killing tobacconists with there low almost insignificant margins made on there prices have made customers expect tobacco to be a lower price than it actually is. They now wish to block the exemption by crying fowl, they see it wrong that specialists should be exempt. SO all these big powerful voices are trying to crush a traditional trade.

So far Gauntleys has survived 2 world wars, depressions, fall of industry in this city and stayed open for 130 years. Fingers crossed we can survive the next 130.


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Article by Glo0

Tobacco fiend & webmaster of this domain!
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