3931 days ago
A few days ago I praised Nigel Farage for contemplating what most politicians do not dare – an acceptance that prohibition does not work, the legalisation of drugs. I am now hauled up with the question of taxation as a form of quasi-prohibition. I refer of course to cigarettes.
My local tobacconist in London offers me a choice of regular Marlboro Lights at £8.50 or what he terms “under the counter” Marlboro Lights from Vietnam at £5. I much prefer the Vietnamese Heath Warnings, although I am sure that the smoker depicted is Gollum and I much prefer paying £5 rather than £8.50 and so I buy “Under the Counter”.
It is estimated by the Government that 10% of fags sold in the UK are “under the counter.” I rather suspect that the real number is far higher. Why is this? Because when I pay £8.50 for a legit pack of fags £6.50 goes to the Government in tax. That leaves c£1.40 for the manufacturer and 60p for the newsagent. The “alternative arrangement sees the manufacturer get his £1.40 with the criminal smuggler and the retailer sharing the remaining £3.60. The retailer is far better off and as long as he is not caught had probably trebled his profit margin and the criminal smuggler coins it in. You will have noticed that the big loser is the Government whose take falls from £6.50 to nil.
The point is that so great are the rewards
