Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Tobacco tax increase to spur quit attempts

29 April 2010

Action on Smoking and Health (ASH) NZ

Tobacco tax increase to spur quit attempts

The Government has announced an increase in the excise tax on tobacco for the first time in a decade. The price of a packet of cigarettes is set to rise significantly over the next 18 months.

Action on Smoking and Health (ASH) says the initial increase will see a seven per cent hike in the retail price and expect that some smokers will quit in response to the tax increase.

“We will see a number of quit attempts now as well as after the tax increase,” said ASH director Ben Youdan.

“However a bigger increase would have resulted in great numbers of smokers quitting. Last year the tobacco industry discounted prices heavily by around $1 per packet, so even with this increase we are treading water in terms of tobacco affordability.

We’ve seen that the tobacco industry has an ability to take smaller margins and absorb tax increases, and we hope they do not exploit this opportunity to encourage quitting.” 

Tax on loose-leaf tobacco will increase by 14 per cent in an attempt to dissuade smokers who have been switching from factory made tobacco to roll-your-own in recent years.

The tobacco tax will increase in three stages starting on the 29th April, January 2011 and January 2012.

The upside of a staggered approach is that it will give smokers and the support systems around them the time to prepare for quit attempts on a large scale,” concluded Mr Youdan.



© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On National’s Plan To Privatise Welfare Delivery

On the rare occasions when it ever gets asked, the public keeps rejecting tax cuts as such, as a policy priority. It keeps saying it wants tax levels to either stay the same or be increased, so that public services can be maintained, or even (perish the thought) improved. In 2018, after nine years of the systematic underfunding of health and education by the last National government, the public wanted better: A UMR survey….shows 92% of Kiwis agree public services like hospitals, schools and the transport system need more government funding...


Luxon: Speech To The 2022 National Party Annual Conference

Kia ora! What a brilliant conference! The energy wave from this weekend will carry us right through to election year and I say: bring it on... More>>

National: Five Years Of Failure For Light Rail
Construction of light rail in Auckland might not begin until 2025 despite tomorrow marking five years since Jacinda Ardern announced it would be delivered to Mt Roskill by 2021, National’s Transport spokesperson Simeon Brown says... More>>

Government: Representation Bill Passes Third Reading In Parliament
Te Rūnanga o Ngāi Tahu welcomes the passing of new legislation tonight to reinstate Ngāi Tahu councillors to Environment Canterbury... More>>

Government: More Women On Public Boards Than Ever Before

“Women’s representation on public sector boards and committees is now 52.5 percent, the highest ever level... More>>

Te Pāti Māori: Debbie Ngarewa-Packer Calls On PM To Support Bill To Ban Seabed Mining

Te Pāti Māori Co-leader, Ngāti Ruanui and Ngā Rauru uri Debbie Ngarewa-Packer is today celebrating that her Prohibition on Seabed Mining Legislation Amendment Bill has been drawn from Parliament’s biscuit tin... More>>

Housing: Building Consents Surpass 50k Again
New Zealand’s strong pipeline of housing construction is continuing with the annual number of new homes consented surpassing 50,000 for the fourth month in a row... More>>




InfoPages News Channels