Video: Budget 2012: smokers hit as duty on tobacco up 37p Citing smoking as the biggest cause of preventable illness and premature death in the UK, the Chancellor said in his Budget speech that there was clear evidence that increasing the cost of tobacco encourages smokers to quit and discourages young people from taking it up. Duty on all tobacco products will rise by 5 percent above inflation. That's 37 pence on a packet of cigarettes," Mr Osborne said. This will take effect at 6pm tonight.