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In the UK, over 60% of the price of a premium cigar is pure tax. As of 3 August 2025, HMRC charges £417.33 per kilogram in cigar duty — about £4.17 per standard 10 g cigar — plus 20% VAT on top of that duty. Add in annual duty increases, shipping, and production costs, and it’s no wonder UK cigar prices are among the highest in the world. Here’s the full breakdown of why your favourite smoke costs so much more here than abroad.