UK Smoking and Tobacco Ban: There is going to be a big change in Britain in the coming time, here an entire generation will not get permission to buy cigarettes and tobacco, because the Tobacco and Vapes Bill has been passed by the Parliament and it will become law as soon as it gets the royal assent. It means clearly that under this, people born on or after January 1, 2009 will not be able to buy cigarettes or tobacco throughout their life.

What is the government’s plan?

• Currently the age to buy cigarettes is 18 years.
• But from 2027 onwards, this age limit will increase by 1 year every year.
• This means clearly that tobacco will be completely banned for the new generation.
• These rules will be applicable throughout the UK (England, Scotland, Wales, Northern Ireland).

Why are investors worried?

• If seen in this matter, the biggest thing is that this law will not be limited to just one generation, but is a step towards gradually eliminating the entire tobacco market.
• After this, tobacco companies will have to change their business model.
• Also there will be a need to explore new markets.
• Investors’ confidence may weaken.

Government’s earnings will be affected

Because the British government earns a lot from tobacco. If we talk…

• Earning approximately £8.8 billion (approximately ₹95,000 crore) in 2024-25.
• This is expected to decline to £8 billion (approximately ₹80,000–85,000 crore) in 2025–26.

If the ban is imposed on the new generation then this earning will gradually end.

Will there be loss or benefit?

• Talking about loss, there will be decline in tax revenue.
• If we look at the benefits, the expenditure on health system (NHS) will be reduced.
• People’s health will also be better.
• Also the workforce will be more productive.

There will be an impact on business and market

• There will be a deep impact on the sales of small shopkeepers.
• Besides, there is a danger of increasing illegal smuggling i.e. black market.
• Currently, losses of £2.8 billion (approximately ₹28,000–30,000 crore) are being incurred from illegal trade.

impact on stock market

• Big companies like British American Tobacco (BAT) and Imperial Brands will be affected.
• Investors now fear that other countries may also implement such rules.