Question to the HM Treasury:

To ask Her Majesty's Government, in the light of the publication by HMRC on 26 October of the Tobacco tax gap estimates 2016–17, what assessment they have made of the relationship between tobacco duty rises and the number of smokers seeking to purchase non-UK duty paid tobacco.

The behavioural response to a rise in prices is captured by the price elasticity of demand. More information on HMRC’s long-run estimate of the price elasticity of demand for cigarettes can be found in HM Revenue and Custom’s publication ‘Econometric Analysis of Cigarette Consumption in the UK’.

Information on the size of the illicit market for cigarettes and hand rolling tobacco is available in HM Revenue and Custom’s publication ‘Tobacco tax gap estimates for 2016-17’.

Both of these publications may be found on the government’s website.