Imperial Brands has called for a reduction in excise duty on hand-rolled tobacco, encouraging retailers to lobby their local MP against “excessive” levels.

This follows reports that rolling tobacco is now more valuable per gram than precious metals such as silver, and Imperial says the current value of hand-rolled tobacco stocked in stores could lead to “an upsurge in crime and abuse against retailers.”

“Last November’s budget applied a Recommended Price Index (RPI) increase of 12% excise rate on hand-rolled tobacco products in the UK. The UK now has the highest excise duty in Europe – six times higher than in Spain, and five times higher than in Germany,” Imperial said.

“We would also encourage retailers to reach out to their local MPs and councillors, ensuring that the issues their businesses are facing are highlighted and heard by relevant public officials,” the company continued.

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Imperial’s calls follow fellow tobacco manufacturer JTI’s call last month for the government to ditch its plans to introduce a generational smoking ban and instead crack down on illicit tobacco sales following a covert operation in Nottingham.  

The government said in November the market share of illicit tobacco had been reduced from 21.7% in 2005 to 2006, to 16% in 2020 to 2021 for both cigarettes and hand-rolling tobacco. In the same period, the revenue lost has reduced from £2.7bn to £2.5bn, the government said.

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“We now have a situation whereby hand rolling tobacco is more valuable per gram than silver, making local retailers and convenience store owners in the UK as much of a target to thieves as jewellery stores,” said Andrew Malm, UK market manager for Imperial Brands.

“Not only does this taxation drive UK consumer spending elsewhere – as, for example, a 30g pouch of rolling tobacco is now four times more expensive in the UK compared to Spain – but it also contributes to the issue of retail crime and illicit trade,” he continued.

“As a responsible manufacturer, we will continue to engage with the Government to re-assess the current excise duty on these products as it poses a significant threat to retailers’ livelihoods and contributes to an already growing illicit market,” Imperial said in a press release.