Will Tobacco Tax Affect Yield?

Tobacco companies will be hit with a new tax to help fund the NHS if Labour win at the next opposition, prompting concerns from income investors

Emma Wall 24 September, 2014 | 10:21AM
Facebook Twitter LinkedIn

Tobacco stocks will be hit with a new tax to fund the NHS if Labour wins the next election. The leader of the opposition Ed Milliband yesterday announced new plans to fund expansion to the National Health Service, starting with a £150 million tax on tobacco companies.

Imperial Tobacco (IMT) is the UK’s largest tobacco company and is expected to bear the brunt of the tax. Imperials director of corporate affairs Axel Gietz this morning called the tax unjust.

“Targeting one individual industry that happens to be unpopular with an additional tax is totally unwarranted and unjust and just a bad idea,” he said.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
British American Tobacco PLC2,599.00 GBP0.00Rating
Fidelity MoneyBuilder Dividend234.80 GBP-0.04Rating
Imperial Brands PLC1,570.50 GBP0.00Rating
Invesco UK Eq High Inc UK Inc324.78 GBP0.63Rating
LF Equity Income A Sterling Acc3.40 GBP0.00
Threadneedle UK Equity Alpha Inc Rtl Inc0.66 GBP-0.18Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar