The budget is due in two days time. The Chancellor may decide that, as the think tank Policy Exchange suggested to the Conservatives, raising taxation on tobacco would be a good thing. He's already under a great deal of pressure from government funded 'charity' ASH to raise the price of cigarettes in the name of 'health'.
If the tax rises by the mooted 25p then the differential between the cost per pack of cigarettes in the UK and on the continent will be over £1. With the re-opening of the channel tunnel the price of a day-trip ticket is now very affordable indeed.
Do I a) buy fags in the UK or b) take a day and go to France/Belgium and buy a substantial supply of fags saving over £500 on UK prices? Tough call .. .. ..
Of course my actions will deprive the UK government of approximately £2500 in tax revenues. I know that I won't be the only one who decides that this is the financially sensible course of action.
Economics in action is a beautiful thing.. .. ..
Monday, March 22, 2010
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2 comments:
Been doing the same with wine for ages now. Couple of trips a year keeps me in decent plonk all year.
Neither Bully McNutter (when he was Chancellor) nor his Darling glove puppet have had a penny piece in excise duty from me for years. The higher they drive the prices here, the more I save.
I'm very grateful and always remember to raise a glass to them when I'm having lunch in Calais.
I had been doing the trip once every 6 months or so but the fall in the value of the pound, coupled with the increased price of fares when the channel tunnel closed due to the fire, made it less economically viable.
The mental barrier of £1 per pack though .. .. ..
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