Scotland: Nimble Supermarkets to Avoid New Tobacco Tax

Source from:  Tobacco Reporter 06/27/2012

Supermarkets in Scotland are to exploit a legal loophole to avoid paying a new tax related to tobacco sales, according to a story by Stephen Stewart for the Daily Record and Sunday Mail. Sainsbury's has said it will stop selling cigarettes and tobacco in three of its main stores but keep selling them in attached petrol stations. The recently introduced tax will hit stores with a rateable value of more than ￡300,000 and that sell both tobacco and alcohol. "It's interesting that Sainsbury's have taken this approach," an insider at a rival chain was quoted as saying. "There was talk about stores even opening a kiosk in their car park to get round the tax." Meanwhile, a Sainsbury's spokesman said that the impact of the public health levy recently introduced by the government had led his company to undertake a review of the sale of tobacco in its ?Scottish stores. "As part of this review, we will remove tobacco products from sale from three of our Scottish supermarkets for the time being. We apologise for the inconvenience." Enditem