A senior Conservative Member of Parliament has called for a reduction in tobacco duty, arguing that the current high tax rate is driving a significant increase in the illicit cigarette market. Jack Rankin, MP for Windsor and Parliamentary Private Secretary to Kemi Badenoch, made the remarks during a fringe event at a party conference.

Rankin highlighted that between one-third and one-half of cigarettes consumed in the UK are believed to be obtained illegally, noting that illicit packs sell for approximately £3.50, significantly undermining legal sales. He suggested that this widespread black market activity results in a substantial loss of revenue for the Treasury, estimating the shortfall to be between £1.7 billion and £4.7 billion.

While acknowledging that cutting tobacco taxes is not likely to be the Conservative government’s immediate priority, Rankin said there is a “clear case” for reviewing current rates to capture greater official revenue and reduce smuggling incentives. He criticized what he described as “sin tax” policies, labeling them as both illiberal and largely ineffective. According to Rankin, such measures are often driven by regulatory officials who hold a “religious type belief” in promoting healthier lifestyles through taxation, rather than by pragmatic considerations.

This commentary comes in the context of recent tobacco control legislation introduced by Prime Minister Rishi Sunak, who has proposed a ban preventing anyone born on or after January 1, 2009, from purchasing tobacco products. The measure, which was passed into law by the previous Labour government and took effect in May, represents a long-term strategy aimed at progressively phasing out smoking within the population.

Rankin’s remarks reflect internal Conservative debates over balancing public health objectives with economic and enforcement challenges posed by tobacco taxation. The government faces the dual challenge of reducing smoking rates while minimizing the growth of the illicit market, which undermines both public health goals and tax revenues.