Budget 2016: Alcohol duties frozen but tobacco duty to rise


The duty on beer, spirits and most ciders will be frozen this year, the Chancellor has announced in today’s Budget.

However, the duty rates on most wines and higher strength sparkling cider will increase by RPI from 21 March 2016.

As announced at Budget 2014, duty rates on all tobacco products will increase by 2% above RPI inflation, while Mr Osborne has today announced a further 3% hike on hand-rolling tobacco, which will rise by 5% above RPI.

The changes to tobacco duty take effect from 6pm today (16 March 2016). 

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