The Customs and Excise (Tobacco) Amendment Bill
that came into effect Wednesday barring
the import of tobacco products without a
permit is putting a band aid on the
gaping wound that is the tobacco black market, caused by
extortionate tobacco excise taxes, Taxpayers' Union
spokesperson Jordan Williams says.
"From the
Ministry of Health to Winston Peters, the Government has
admitted that the excise tax on tobacco is no longer working
to reduce smoking rates. What is clear is the tax is doing
more harm than good by encouraging the black market demand
of tobacco, robberies of dairies and adding more work for
Customs officials."
"According to new KPMG analysis,
illicit tobacco now makes up 11.5% of tobacco consumption in
New Zealand - up from 9.5% in 2017. Adding more legal
complexity is not going to address the real driver of this
black market, which is the absurdly high excise tax. The
Government needs to look at the problem objectively, instead
of being blinded by the $1.9 billion in tax
revenue."
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