Frontline Measures Better than More Tobacco Tax Hikes
Frontline Measures Better than More Tobacco Tax Hikes
14 JANUARY 2016
FOR IMMEDIATE
RELEASE
The
Taxpayers’ Union says that new measures to curb
smoking shouldn’t include more rounds of tax hikes, and
should instead focus at frontline measures to support people
to quit. Taxpayers’ Union Executive Director,
Jordan Williams, says:
“On January 1 tobacco excise went up another 10 percent despite the evidence that taxes are having, counterintuitively, the least impact on lower socioeconomic groups quitting. The means that families are instead going without."
"The Government would be much better giving up some tax revenue by legalising e-cigarettes which according to the UK Government, are 95 percent less harmful and are the most popular smoking cession tool in Britain.”
“Taxes on tobacco are already more than three times the health costs of smoking. For a cheap $20 20-pack of cigarettes, nearly $16 is tax. Any higher and we risk an Australian style-illicit tobacco trade."
“If the Government does put up excise tax, other taxes should be reduced to compensate New Zealanders. Without a tax cut somewhere else, the Government’s use of smokers as cash cows becomes obvious.”
A copy of the Taxpayers’ Union report which was published on 1 January, Passive Income - How the Government uses smokers as cash cows, is available here: http://www.taxpayers.org.nz/passive_income
Key facts:
• Around 1.4% of government revenue comes from
tobacco customs and excise taxes.
•
• New Zealand
continues to ban e-cigarettes, despite Public Health England
finding that the devices are the most popular smoking
cessation tool, and 95% healthier than traditional
cigarettes.
•
• Analysis of the effect of
previous rises in tobacco taxes shows that they are becoming
less and less effective, especially among low socioeconomic
communities.
•
ENDS