Cigarette black market result of high tax

Mark Littlewood appears on BBC R5 Breakfast

Mark Littlewood appeared on BBC Radio 5 Live to discuss the effects of high taxes on the tobacco market.

Mr Littlewood stated that although tax is not the only incentive to smuggle, it is a significant one. With tax on premium brand cigarettes at approximately 1000%, that gives smugglers a huge incentive to bring cigarettes to the market at a much cheaper price. If a hugely popular product is taxed at such a high rate, then we are highly likely to see a large black market.

Listen to the full programme here. Segment begins at 1:07.43.

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