LONDON, July 8 (Reuters) - The British government said onWednesday it would not introduce a levy on tobacco manufacturersand importers as a consultation had shown the cost would simplybe passed on to consumers.
Last December, the government said it was consideringintroducing a levy, which would have been based on market share,and launched a consultation to gather views on the idea.
"Analysis of the responses shows that the impact of atobacco levy on the tobacco market would be similar to a dutyrise, with tobacco manufacturers and importers passing the levyonto consumer prices," the government said in its budget.
"As tobacco duties have already increased this year and willcontinue to increase by more than inflation each year in thisparliament, the government has decided not to introduce a levyon manufacturers and importers."
The government said its analysis had shown a levy of 150million pounds would only have raised 25 million pounds afterbehavioural effects were accounted for.
Big tobacco companies, such as Philip Morris International, British American Tobacco, Japan TobaccoInternational and Imperial Tobacco, are alreadyat odds with the British government over plans to require plainpackaging of tobacco products. (Reporting by Kylie MacLellan; editing by Stephen Addison)