Tobacco Excise Increase: Effect on Price Uncertain
Release British American Tobacco
British American Tobacco New Zealand today said that it was difficult to precisely predict the effect of the Government’s excise increase on the final price of its tobacco products.
The Head of Corporate and Regulatory Affairs, John Galligan, said “Given that this increase was only made today, it is too early to know how it will be reflected in the price the consumer will pay for each of our brands.
“However, what we do know is that the Government has understated the price increase. If the full excise increase is to be passed to consumers by the manufacturers, wholesalers and retailers, then the full price increase to consumers could be more than the $1 indicated by Government.
“Naturally, there are a number of elements that will determine the final price, including manufacturer increases and distributor margins and retailer margins.
“While at this time British American Tobacco New Zealand cannot give a clear indication on the final price of its brands, it is clear that the Government wants to see consumers pay more for tobacco products.”