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HMRC internal manual

Tobacco Products Duty

Cigarettes: Retail price for purposes of calculating the ad valorem duty element

The law (TPDA 1979 s.5) provides that the retail price for duty purposes is:

  1. the higher of -



    1. the recommended price for the sale by retail at that time in the UK of cigarettes of that description, and
    2. any (or if more than one, the highest) retail price shown at that time on the packaging of the cigarettes in question, or
    3. if there is no such price recommended or shown, the highest price at which cigarettes of that description are normally sold by retail at that time in the UK.

(Please note that the afore going is an explanation of the law as amended by the Finance Act 2000. You can contact the Tobacco Policy Team, Ralli Quays for further advice.)