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Technical Information, VAT, Duty and Interest Rates

Typical duty rates

The table below gives the typical rates of duty on some of the most common products. All information correct as at 6pm on 13 December 2023.

The figures and quantities shown in the table are provided as a guide only and do not replace or override any official tables and notifications of rates.

The amounts represent the duty only. With the exception of heating oil, VAT is also due at 20% in addition to duty. VAT is due on heating oil at 5%.

Table of typical
duty rates
DutyAmount paid
Cigarettes 16.5% of the retail price plus £316.70 per 1,000 cigarettes For a typical packet of 20 cigarettes costing £9.95 the duty is £8.13
Cigars £395.03 per kg For a typical packet of 5 cigars such as Hamlets (7.5g), the duty is £2.96
Hand rolling tobacco £412.32 per kg For a 25g packet the duty is £10.31
Pipe tobacco £173.68 per kg For a 25g packet, the duty is £4.34
Tobacco for Heating £325.53 per kg
Road fuel (Diesel or unleaded petrol) 52.95p per litre or
£2.41 per gallon
Heating oil Domestic heating oil (kerosene) 0.00p
Gas oil, such as used in schools and power stations etc, 10.18p per litre
Bio diesel(made from waste cooking oil)   52.95p per litre used as road fuel, less Isle of Man rebate 2.20p per litre10.18p per litre as off-road fuel Effective IoM duty rate of 50.75p per litre 

All hand rolling tobacco and cigarettes sold in the Isle of Man or UK must now carry this mark:

Cigarette and tobacco duty paid label

Alcohol Duty

Due to the recent alcohol review the number of possible duty rates of alcohol for draught and non-draught products based on the ABV% has increased beyond the capacity of the above format; for a full list of the new alcohol duty rates please refer to the following HMRC website:

Most spirits of 30% abv or more in 35cl containers or above, if offered for sale in the Isle of Man or UK, must carry this duty stamp, if they don't, they may be illegal:

Duty stamp for spirits


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