UK Cigar taxes

[Shaun]

The tax isnt extreme though, about ?3 on a robusto and then you pay VAT but you pay that on everything. H+F are the real sharks as you say, and then some UK retailers take it one step further.

[SHAMZ84]

This, many times, B. Although the taxes are pretty high, it also seems like H&F charge a large amount for imports

You say that but the prices in Gibraltar are pretty dam good an I'm sure they are supplied by h&f

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[peanutpete]

it's a lot of tax but also factor in where most cigar shops are usually very affluent areas so high rents rates than add on staff wages etc I would put a fiver on it that shops in Spain have half the costs

[sheppsea]

You say that but the prices in Gibraltar are pretty dam good an I'm sure they are supplied by h&f

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When you consider the cost in places like Hong Kong, Gibraltar isn?t that cheap - the aforementioned Cohiba Robusto costs ?390 for a 25 count box there, whereas it costs ?310 in Hong Kong, and ?450 odd in Germany (so closer to Germany is closer to Gibraltar than Gibraltar is to HK, and with full taxes paid)

H&F take a big cut of what comes through, I have heard that part of this is strategic as well as they want cigars to be a luxury item, although that is only based on rumour and hearsay so should be taken with a big pinch of salt

Gibraltar is very cheap in comparison to the UK, but there are better place to get cigars

[SHAMZ84]

When you consider the cost in places like Hong Kong, Gibraltar isn?t that cheap - the aforementioned Cohiba Robusto costs ?390 for a 25 count box there, whereas it costs ?310 in Hong Kong, and ?450 odd in Germany (so closer to Germany is closer to Gibraltar than Gibraltar is to HK, and with full taxes paid)

H&F take a big cut of what comes through, I have heard that part of this is strategic as well as they want cigars to be a luxury item, although that is only based on rumour and hearsay so should be taken with a big pinch of salt

Gibraltar is very cheap in comparison to the UK, but there are better place to get cigars

What I was getting at Gibraltar is relatively cheap and still supplied by h&f. So there cut wouldn't be that big...using your example with cohiba roubsto. They are about 700ish in the UK...and both supplied by h&f which makes me believe the UK b&m are making a hefty profit and it's not just the taxes that are making cigars so expensive.

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[SHAMZ84]

What I was getting at Gibraltar is relatively cheap and still supplied by h&f. So there cut wouldn't be that big...using your example with cohiba roubsto. They are about 700ish in the UK...and both supplied by h&f which makes me believe the UK b&m are making a hefty profit and it's not just the taxes that are making cigars so expensive.

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Actually the prices is more close too 600

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[potpest]

There was a court case around 10 years ago where a company called master cigars tried to import Cuban cigars in direct competition with H&F. I think the news at the time was that it could see cigar prices halve in the UK. As far as I can remember they lost the case and so H&F maintained the exclusive import rights.

[Budgie Smuggler]

http://www.mondaq.com/uk/x/47340/Trademark/Close+But+No+Cigar

[moteyi]

My reading of the above article is that Mastercigars won on appeal - or am I missing something? -

"In these circumstances the Court of Appeal held that the trade mark owner had impliedly but unequivocally consented to the placing of such cigars on the EEA market and that its trade marks rights, in consequence, were exhausted."

[Budgie Smuggler]

That?s my interpretation of it.

If I recall correctly Master Cigars won but went bust after spending so much on the Court case with no income as the cigars had been seized.

[sheppsea]

What I was getting at Gibraltar is relatively cheap and still supplied by h&f. So there cut wouldn't be that big...using your example with cohiba roubsto. They are about 700ish in the UK...and both supplied by h&f which makes me believe the UK b&m are making a hefty profit and it's not just the taxes that are making cigars so expensive.

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I did get that, but I suspect H&F still took a considerable chunk out of it otherwise prices would have been more similar to HK, whose vendors I am sure still make a healthy profit

I am certainly not saying that B&Ms in the UK are on the breadline, but neither are H&F

[Gus Fring]

On a very rare occasion I'll buy from a UK retailer if I'm in the mood for something different (kinda like when you're girlfriend puts on a red wig for the night ) but otherwise I buy from abroad, or go abroad myself and bring my stock back.

There's absolutely no other way to tackle the ridiculous prices in the UK other than just not entertaining them, imo.

[akyprianou]

All very good comments on this thread, i have been saying for years now that its not the tax man pushing the prices up.......its H&F. They are killing the cigar scene & culture in the UK, which really scares me to think where a lot of the UK retailers will be in 10 years from now..........i strongly believe only shops like JJ Fox will be in business due to the high level of tourism and passing trade. (The only UK retailer i buy from rarely to smoke in lounge, great people!)

99.9% of my buying all comes from 'on holiday' and it really does up set me a lot..................i was really upset recently when i received an email from are sponsor asking where have i been for the last year, really goes to show how bad things could be getting..........sorry guys but im way priced out of the UK market.

I really do fear for the UK retailers and its only going to get worse while H&F own the monopoly............have any of you guys seen the price of the new Cohiba LE 2017?.....Pathetic!

Cheers

[Horsebox]

[MENTION=13402797]akyprianou[/MENTION] Perhaps it's an intentional strategy to keep cigars as an exclusive and luxury item in the UK?

I could afford to smoke a few singles at UK prices and perhaps treat myself to a box every now and again but it's certainly a luxury.

Look across the pond to the US and it seems much more of an everyman pursuit.

[akyprianou]

@akyprianou Perhaps it's an intentional strategy to keep cigars as an exclusive and luxury item in the UK?

I could afford to smoke a few singles at UK prices and perhaps treat myself to a box every now and again but it's certainly a luxury.

Look across the pond to the US and it seems much more of an everyman pursuit.

Unfortunately you are correct, the UK associates cigars as a Luxury item of power & wealth, when in reality its far from that......it is a strategy to keep the prices out of reach from the everyday and even the middle classes. Its not like this across the rest of Europe though.........if you go to places like Berlin you will see everyday class people smoking cigars, specially in Spain, its all wrong