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

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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
British American Tobacco PLC2,878.00 GBP0.00
Fidelity MoneyBuilder Dividend207.80 GBP-0.19
Imperial Brands PLC1,400.00 GBP0.00
Invesco High Income UK Inc272.41 GBP-0.40
LF Woodford Equity Income A Sterling Acc12.38 GBP-0.08
Threadneedle UK Equity Alpha Inc Rtl Inc0.55 GBP-0.16

About Author

Emma Wall  is former Senior International Editor for Morningstar

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