The world’s biggest tobacco company has for the first time asked to be taxed more by Chancellor Philip Hammond – to encourage smokers to switch to healther alternatives.

Philip Morris, which makes brands such as Marlboro, said it backed an increase in taxes on its cigarettes as part of its bid to move to a “smoke-free future”.

In a Budget submission sent this week to Philip Hammond, the Chancellor, Philip Morris said “we support proportionate tax increases”.

Cancer is caused by burning the tobacco in cigarettes. Currently a packet of 20 Malboro cigarettes costs £9.60, of which £7.10 is excise duty and VAT.

But a packet of 20 Iqos cigarettes – which heat, rather than burn the tobacco – cost £7 of which £2.94 is from excise duty and VAT. A packet of 20 Nicolite e-cigarettes cost £4.75 of which 79p is VAT.