After the Budget there was a lot of anger over the pasty tax and the granny tax. Another big rise — in tobacco taxes — didn’t make as many headlines, because it wasn’t much of a surprise. But for someone smoking a pack a day it almost wiped out the entire value of the rise in the Personal Allowance. Given that most smokers earn relatively low incomes, it was probably the most regressive measure in the Budget.
The idea is that smokers are supposed to be grateful for this impetus to give up. Many will keep smoking though, and this will just be yet another strain on their household budgets. Some will respond by buying more from the illicit market.
Many people who don’t want to move abroad are pushed towards doing so when Income Tax rates rise, driving a greater and greater divide between their post-tax incomes here or in Switzerland.
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