They say that the 44.5p increase in duty on a packet of 20, bringing the price to more than £4, will simply force more smokers to quit.They also argue that people will be encouraged to try to smuggle in cigarettes or buy them from the Airport’s duty-free shop when flying.An average packet already costs about £3.70 and tobacco importers spokesman Peter Tabb says that it is likely that the duty increase would be passed on in full – with wholesalers also adding a margin on top.But Mr Tabb said that the States last year underestimated revenue from sales by £6m.
‘The law of diminishing returns is applying here, and it will have more effect as a result of this greater increase,’ he said.
