The TMA’s member companies are committed to placing only LIP cigarettes on the market as of 17 November 2011, and therefore are supplying wholesalers and retailers with LIP cigarettes in advance of this date.

Consumers should remember that there is no such thing as a “fire-safe” cigarette. Cigarettes are designed to be burned and any burning item presents a fire hazard. We would urge all smokers to be responsible and ensure all cigarettes are extinguished and disposed of carefully.

Queries with regard to specific brands of cigarettes should be directed to our member companies as appropriate:

BAT
Customer Helpline – Free phone number on pack

JTI
Customer Helpline – 0800 181519

ITL
Customer Helpline – Free phone number on pack

“The TMA note that the government plans to consult on plain packaging legislation next Spring. The TMA is strongly opposed to the principle
of plain packaging and expects that a balanced and transparent consultation and regulatory impact assessment will be carried out. We do
not believe any plans for plain packaging are based on any compelling evidence or sound public policy. Plain packs would likely lead to yet
further increases in the illicit trade in tobacco products by making them much easier for a counterfeiter to copy than existing branded
packs. It would become even more difficult for a consumer to differentiate between genuine and counterfeit products. If illicit trade
is to be effectively combated, the intellectual property rights of legitimate brands must be properly protected and enforced.”

- ENDS -

For further information, please contact:

Ben McArdle, Campaigns Manager
t: 020 7544 0116 m: 07712 530 436
e: bmcardle@the-tma.org.uk

There is no credible evidence that smoking has any meaningful impact on road safety. The Royal Society for the Protection of Accidents list eight substantial factors in road accident fatalities including speeding, drink driving and not wearing a seatbelt. Distraction is not listed, and certainly not distraction by smoking. http://www.rospa.com/faqs/detail.aspx?faq=298

A major study in America by the AAA Foundation for Traffic Safety into the causes of the already comparatively rare distraction-related accidents showed that cigarette smoking was responsible for less than 1% of distraction-related accidents, the lowest prevalence factor that was identified in the survey. http://www.accidentreconstruction.com/newsletter/apr08/distractionAAA.pdf

The magnitude of the ‘issue’ of smoking in cars is also substantially overstated. Research by the TMA into smoker habits has shown that, only 55% of adult smokers would ever smoke in a car under any circumstances and less than 8% would smoke if a child was present in the car. With national smoking prevalence at around 20%, anecdotal figures touted around by tobacco control lobbyists of over 50% of young people being exposed to smoke in cars is clearly inaccurate. To put the levels of health risk in context, a recent report by the Environmental Audit Committee in Parliament suggested that over 30000 people died in the UK due to air pollution from vehicles, industry and other environmental factors in 2008. http://www.parliament.uk/business/committees/committees-a-z/commons-select/environmental-audit-committee/news/air-quality-a-follow-up-report/

There is evidently scope for engagement with smokers to discourage smoking in cars with children present and reducing this rate out of consideration for others and as set out in the NHS’ ‘Take Seven Steps’ campaign. There is, however, no evidence that this is an issue that demands legislation into private space, either private homes or private vehicles, legislation that would deliver no real health benefit and be almost impossible to properly enforce.”

- ENDS -

For further information, please contact:

Ben McArdle, Campaigns Manager
t: 020 7544 0116 m: 07712 530 436
e: bmcardle@the-tma.org.uk

“The TMA and its member companies welcome the reduction in illicit tobacco volumes, as reported in the latest HMRC Measuring Tax Gaps report. Nevertheless, the fact that up to 16% of cigarettes and 50% of RYO is smuggled, losing revenue of £3.1 billion, clearly shows it is still a very serious issue.

“In addition, it should be noted that these figures refer to 2009/10, and since then tobacco taxation has increased markedly, leading to the price of cigarettes rising by as much as £1.00 per 20.

”High tobacco taxes are an acknowledged driver of this illegal trade and there is widespread concern that the increases imposed over the past 18 months will lead to a rise in this criminal activity.”

Mr Ogden added:

”As part of the Tackling Tobacco Smuggling Strategy the tobacco industry continues to work closely with HMRC , the reduction in the illegal trade is a sign that this partnership is producing results. However, this could be undermined by the Government’s tobacco tax policy which will see duty rise by a further 2% above inflation each year until 2014.”

- ENDS -

For further information\interviews, please contact:

Zöe Walker, Corporate Affairs Manager
t: 020 7544 0111 m: 07872 376748
e: zwalker@the-tma.org.uk

Notes to Editors:

1. The TMA is the trade association for tobacco companies that operate in the United Kingdom. Our members are British American Tobacco UK Ltd, Gallaher Ltd (a member of the JTI Group of companies) and Imperial Tobacco Ltd.

2. The Tackling Tobacco Smuggling strategy was unveiled in March 2000, with further revisions taking place in March 2006, November 2008 & April 2011

3. A typical pack of 20 cigarettes costs £7.09 in the UK against around £3.25 in Spain and £2.25 in Poland. The UK has the second highest cigarette taxation in the European Union, behind the Republic of Ireland

4. A 50gr pouch of handrolling tobacco costs £14.48 in the UK against £4.70 in Belgium

5. HM Revenue & Customs Measuring Tax Gaps Report 2011 revealed that up to £3.6 billion in revenue was lost through smuggling and crossborder shopping in tobacco products in 2009/10.

6. Further information can be found on the TMA’s website – www.the-tma.org.uk

Click here to find out more on the TMA’s position on smoking in public places

Since the Tackling Tobacco Smuggling (TTS) strategy was introduced in 2000 the level of tobacco smuggling has been reduced but it still poses a significant threat. According to latest available figures from HMRC, smuggling continues to account for up to 17% of cigarette and 59% of handrolling tobacco consumption, resulting in a loss of up to £3.1 billion to HM Treasury.

Christopher Ogden, Chief Executive of the Tobacco Manufacturers’ Association (TMA), said:

“We very much welcome the Government’s commitment to cracking down on those who operate in the illicit tobacco market and we are pleased that the refreshed strategy acknowledges the importance of working with the TMA and its member companies.

“As part of the review we have been working with HMRC to look at ways to better understand the composition of the illicit tobacco market, the impact of taxation on consumption, intelligence sharing, communications campaigns and behavioural insight. Therefore, we welcome today’s report as it recognises our ongoing commitment and strong working relationship in this area.

”However, January’s increase in VAT and the subsequent tax hike at the Budget, has led to cigarette prices increasing by as much as 66 pence for a pack of 20 (87 pence on a 25gr of handrolling) and this will only incentivise smokers to seek cheaper illicit products and provide a greater profit motive for organised criminals to smuggle.

“The illicit tobacco market will continue to provide significant challenges but we look forward to a stronger working relationship with Government and law enforcement agencies in addressing this problem.”

- ENDS -

For further information\interviews, please contact:

Paul Stockall, Tax & Information Manager
t: 020 7544 0113 m: 07545 440700
e: pstockall@the-tma.org.uk

Notes to Editors:

1. The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (www.bat.com), Gallaher Ltd (a member of the JTI Group of companies – www.jti.com), and Imperial Tobacco Ltd. (UK) (www.imperial-tobacco.com).

2. The Memorandum of Understanding (MoU) signed in March 2006 between the TMA’s member companies and HM Revenue & Customs create a comprehensive framework for co-operation aimed at combating the smuggling of both genuine and counterfeit tobacco products into the UK as well as seeking to deter all aspects of the illicit trade in tobacco products.

To supplement the MoU, key elements of the agreement have been enshrined in legislation (The Tobacco Products Duty Act 1979, as amended by the Finance Act 2006) so that any tobacco company, operating anywhere in the world, is under the same obligations as the TMA’s member companies to ensure that it does not allow its products to be smuggled.

The refreshed Tackling Tobacco Smuggling Strategy provides for agreement in principle to an update of the MoUs which will be announced in due course

3. A typical pack of 20 cigarettes costs £6.95 in the UK against around £3.15 in Spain and £2.25 in Poland.

4. The UK has the second highest cigarette taxation in the European Union, behind the Republic of Ireland.

5. HM Revenue & Customs Measuring Tax Gaps Report 2010 revealed that up to £3.8 billion in revenue was lost through smuggling and crossborder shopping in tobacco products in 2008/09.

6. Since 2000/1 HMRC estimate that over £40 billion in revenue has been lost because of smuggling and crossborder shopping.

7. Further information can be found on the TMA’s website – www.the-tma.org.uk.

“Government has today increased tobacco duties by 2% above inflation which clearly demonstrates a complete lack of joined-up-thinking as taxation is the acknowledged driver of the illicit tobacco trade. The refreshed Tackling Tobacco Smuggling Strategy is to be announced shortly, yet this increase will only serve to undermine the effectiveness of this strategy.

”The Irish Government recognised that tax increases were driving the illicit trade in tobacco and decided not to raise duties in the last two Budgets. The Chancellor should have followed their example.”

According to latest data available from HM Revenue & Customs, up to 22% of cigarettes and 61% of handrolling tobacco consumed in 2008/09 avoided UK duty.This equates to a revenue loss to the Treasury of £3.8 billion (£10.4 million per day).

Mr Ogden added:

”As part of the Tackling Tobacco Smuggling review we are working closely with HMRC on a number of specific areas. This is an extremely positive development, but since January 2010 tobacco taxes in the UK have increased more than in any other EU Member State. With the further tax rise announced today, there is great concern that the cumulative effect of these tax increases will lead to an escalation in illicit trade.”

- ENDS -

For further information\interviews, please contact:

Zöe Walker, Corporate Affairs Manager
t: 020 7544 0111 m: 07872 376748
e: zwalker@the-tma.org.uk

Dirk Vennix, Director of Communications
t: 020 7544 0115 m: 07790 060041
e: dvennix@the-tma.org.uk

Notes to Editors:

1. The TMA is the trade association for tobacco companies that operate in the United Kingdom. Our members are British American Tobacco UK Ltd, Gallaher Ltd (a member of the JTI Group of companies) and Imperial Tobacco Ltd.

2. The Tackling Tobacco Smuggling strategy was unveiled in March 2000, with further revisions taking place in March 2006 and November 2008.

3. The Tobacco Manufacturers’ Association (TMA) participated in Progressive Vision’s summit on the illicit tobacco market, which took place in London on 31 January 2011. Mark Garnier MP, Treasury Select Committee member spoke at the event. An audience of government and law enforcement officials, retailers, manufacturers and other key stakeholders explored measures for a new and coordinated approach to tackling and raising awareness of tobacco smuggling. Further information on the event can be found on the TMA’s website.

4. Prior to the Budget a typical pack of 20 cigarettes costs £6.63 in the UK against around £3.15 in Spain and £2.25 in Poland. The UK has the second highest cigarette taxation in the European Union, behind the Republic of Ireland.

5. HM Revenue & Customs Measuring Tax Gaps Report 2010 revealed that up to £3.8 billion in revenue was lost through smuggling and crossborder shopping in tobacco products in 2008/09.

6. Since 2000/1 HMRC estimate that over £40 billion in revenue has been lost because of smuggling and crossborder shopping.

7. Further information can be found on the TMA’s website.

website.

“The refreshed Tackling Tobacco Smuggling Strategy is to be announced shortly, yet indications are that tobacco duties are set to rise by 2% above inflation at the forthcoming Budget. This would clearly show a lack of joined up thinking as taxation is the acknowledged driver of the illicit tobacco trade. We therefore call on the Government to resist any calls to raise tobacco duties and allow time for the Tackling Tobacco Smuggling Strategy to work.

”The Irish Government recognised that tax increases were driving the illicit trade in tobacco and therefore chose not to raise duties at consecutive Budgets. The Chancellor should be looking to follow their example.”

According to latest data available from HM Revenue & Customs, up to 22% of cigarettes and 61% of handrolling tobacco consumed in 2008/09 avoided UK duty. This equates to a revenue loss to the Treasury of £3.8 billion (£10.4 million per day).

Mr Ogden added:

”As part of the Tackling Tobacco Smuggling review we are working closely with HMRC on a number of specific areas. This is an extremely positive development, but since January 2010 tobacco taxes in the UK have increased more than any other EU Member State. With the possibility of a further tax rise at the Budget, there is great concern that the cumulative effect of these tax increases will lead to an escalation in illicit trade thereby undermining our joint efforts to tackle the problem.”

- ENDS -

Dirk Vennix, Director of Communications
t: 020 7544 0115 m: 07790 060041
e: dvennix@the-tma.org.uk

Zöe Walker, Corporate Affairs Manager
t: 020 7544 0111 m: 07872 376748
e: zwalker@the-tma.org.uk

Notes to Editors:

1. The TMA is the trade association for tobacco companies that operate in the United Kingdom. Our members are British American Tobacco UK Ltd, Gallaher Ltd (a member of the JTI Group of companies) and Imperial Tobacco Ltd.

2. The Tobacco Manufacturers’ Association (TMA) participated in Progressive Vision’s summit on the illicit tobacco market, which took place in London on 31 January 2011. Mark Garnier MP, Treasury Select Committee member spoke at the event. An audience of government and law enforcement officials, retailers, manufacturers and other key stakeholders explored measures for a new and co-ordinated approach to tackling and raising awareness of tobacco smuggling. Further information on the event can be found on the TMA’s website – www.the-tma.org.uk

3. The Tackling Tobacco Smuggling strategy was unveiled in March 2000, with further revisions taking place in March 2006 and November 2008.

4. Prior to the Budget a typical pack of 20 cigarettes costs £6.63 in the UK against around £3.15 in Spain and £2.25 in Poland.

5. The UK has the second highest cigarette taxation in the European Union, behind the Republic of Ireland.

6. HM Revenue & Customs Measuring Tax Gaps Report 2010 revealed that up to £3.8 billion in revenue was lost through smuggling and crossborder shopping in tobacco products in 2008/09.

7. Since 2000/1 HMRC estimate that over £40 billion in revenue has been lost because of smuggling and crossborder shopping.

8. Further information about the issue of tackling tobacco smuggling can be found on the TMA’s website – www.the-tma.org.uk

“On behalf of retailers, the TMA is pleased that the Government has decided to delay the implementation of the display ban. However, the coalition parties were opposed to the ban before the general election in 2010 and we hope they will review the legislation again and decide to revoke it.

“There is no credible evidence to support the stated public health objective that restricting tobacco displays will reduce youth smoking levels. The TMA shares the Government’s view that minors should not smoke and they should not have access to tobacco products. Proof of age schemes and rigorous enforcement of laws on under-age sales are more effective solutions to the issue of preventing youth access to tobacco and the TMA is fully committed to supporting these activities.

“The TMA is strongly opposed to the principle of plain packaging and would expect a genuine consultation and regulatory impact assessment if the Government decides to pursue this further. We do not believe any plans for plain packaging are based on sound public policy, nor any compelling evidence. Moves to prevent tobacco companies from exercising their intellectual property rights would place the Government in breach of legal obligations relating to intellectual property, international trade and European law. Plain packs are also likely to lead to yet further increases in the smuggling of tobacco products and plain packs would make it so much easier for a counterfeiter to copy than existing branded packs making it even more difficult for a consumer to differentiate between genuine and counterfeit products.”

Chris Ogden added; “We await the detail of other tobacco control measures in the Tobacco Control Plan and hope that our voice will be heard in the consultation”.

Dirk Vennix, Director of Communications
t: 020 7544 0115 m: 07790 060041
e: dvennix@the-tma.org.uk

Zöe Walker, Corporate Affairs Manager
t: 020 7544 0111 m: 07872 376748
e: zwalker@the-tma.org.uk

Notes to Editors:

1/ The TMA is the trade association for tobacco companies that operate in the United Kingdom. Our members are British American Tobacco UK Ltd, Gallaher Ltd (a member of the JTI Group of companies) and Imperial Tobacco Ltd.