Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how the level of compensation for the hardware and software for the recording and transmission of the information for product movement and transactional events to the data storage systems (Article 15(7) of TPD2014/40/EU) was calculated.

As required by Article 15(7) of the Tobacco Products Directive, HM Revenue & Customs (HMRC) has ensured tobacco manufacturers and importers have arrangements in place to provide economic operators with the equipment necessary to record and transmit track and trace transactions.

These arrangements, which include the level of compensation offered, are contractual matters between tobacco manufacturers and importers, and the companies in their supply chains. HMRC has not been involved in these contractual discussions and is unable to comment on how the compensation is calculated.