Researchers from the University of Bath say the Government could generate an extra £500m in tobacco tax revenue by setting a maximum price at which companies can sell cigarettes and by transferring any “excess” profit to the Treasury.
They say cigarette manufacturers make “roughly double” the profits of most other major companies.
I’m not quite sure what that actually means. Double as a percentage of turnover? Capital employed? However:
“A handful of companies dominate the market and cream off massive profits,” Dr Branston, deputy director of the university’s centre for governance & regulation, said.
“With such a deadly product, competition isn’t attractive,
That’s the reason they’re so profitable you idiot sodding tosspot! You’ve banned advertising, thus largely banned competition and new entrants into the market. And it’s hardly one of the world’s great surprises that profits are high in a non-competitive industry.
One bit that would hugely intrest me though. Fags are made by multi-nationals. How are they going to identify UK costs/profits? As Google et al show, that ain’t all that eaasy, is it?