Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Higher tax on smokes opens door to black market: Imperial

Higher tax on smokes opens door to black market, Imperial Tobacco says

By Hannah Lynch

May 24 (BusinessDesk) - Imperial Tobacco, whose brands in New Zealand include Drum, Horizon and Peter Stuyvesant, said the hike in tobacco tax announced in today's budget, opens the door to increase New Zealand's illicit usage.

Finance Bill English this afternoon announced the excise on tobacco will rise by 10 percent a year for the next four years. The tax hike is expected to raise $1.4 billion. By 2016, a packet of 20 cigarettes will cost $20 or $1 per cigarette, the Treasury papers said.

"The government could shoot itself in the foot with this policy decision by creating a lucrative black market for tobacco," Imperial Tobacco’s Brendan Walker said in a statement. "The most recent study from Australia shows smokers have moved from purchasing unbranded tobacco to counterfeit and contraband tobacco."

"Policy makers must remember we are a legal company selling a legal, highly regulated product to consenting adults whose right to use our product, of their own free will should be respected," he said.

The Crown collected $145 million in excise from locally produced tobacco and a further $746 million from taxes on imported tobacco, according to the government's financial statements for the nine months ended March 31.

A Ministry of Health discussion paper released last month modeled the impact on smokers' behavior if the price of a packet of 20 cigarettes rose to $100 over the next eight years from around $16 today, to help achieve the goal of a ‘smokefree New Zealand’ by 2025.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>

ALSO:

Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>

ALSO:

Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>

ALSO:

 
 
 
 
 
 
 
 
  • Bill Bennett on Tech