3News » Home
Full Story

Cigarette price hikes work, say Key and Turia

30 comments | Post Comment Email Print Text Size:
aA
aA
aA
Mon, 01 Feb 2010 5:31p.m.

By Rebecca Wright

A paper recommending significant hikes to the tax on cigarettes will go to Cabinet later this month which could see many Kiwis priced out of the habit.

Maori Party co-leader Tariana Turia says cessation campaigns have not worked, and it is time smokers were hit in the pocket.

Prime Minister John Key agrees it works, but whether his government adopts it is yet to be considered by Cabinet.

Ms Turia wants the Government to hike excise and sales tax on cigarettes and ban advertising at the point of purchase.

"If you raise the taxes and take the smokes off the shelves in the shops, that has a huge impact," she says.

Exactly how much the price hike will be has not been decided yet, but it will need to be significant.

It is a strategy that has the support of smokefree group Ash.

"Smokers in New Zealand tend to smoke the cheapest brands, and we've also got one of the highest rates of roll-your-own smokers," says Ben Youdam. "People smoke those because they're cheaper, so people are very, very sensitive to price."

Twenty percent of Kiwis still smoke - amongst Maori women that figure rises to almost 50 percent. That is despite millions of dollars being spent on smokefree campaigns; like raising the purchase age to 18, restricting marketing and advertising, public education campaigns, banning it in bars and adding health warnings to packets.

Ms Turia says they have not worked, and she is determined to use her influence to put a pack of cigarettes out of reach of most people.

Mr Key agrees it is an effective tool.

"Evidence shows that the fastest way to stop people smoking is through an increase in price, or the most effective way anyway. We'll need to think through all of those issues - we haven't done that yet and I don't want to prejudge any Cabinet discussion on the matter."

Ms Turia's recommendations will be presented to Cabinet in a paper later this month. If they are taken up by the Government, hefty price hikes and bans on advertising are likely to be announced in the May budget.

3 News

Comments [30]

Repetitious Historian
04 Mar 2010 4:24p.m.

In the United States it was TEA, in India it was Cloth, in China it was Rice., no matter what the item, when your government starts running itself through over-taxation it is time to speak LOUDLY....

urban druid
05 Feb 2010 3:13p.m.

This will stimulate criminally minded individuals and groups into action. An increase in crimes like aggrevated robbery and burglary of tobacco suppliers would be one example of the effect this policy will have. When prohibitive policies go too far, the criminal factor becomes progressively more and more involved in the market because they suddenly become more lucurative. This means more prison cells and more actual victims of crime.
If crime does not go down in the next six months, but rather increases as I fear it will, will the serious questions start to be asked about the faith we have in certain ideas on law and order? Or will there be another re-doubling of present responses hoping yet again for the opposite outcome?
Once upon a time, between 50 and 60% of the kiwi population smoked tobacco. Now that is down to 21%. This change was not achieved with prison time, fines for smoking, or even the death penalty. People have received the message that smoking is not widely acceptable as a form of drug use, isn't this enough lest we risk harming smokers and their families in addition to the already widely known inherant risks to smoking tobacco?

Monique
04 Feb 2010 8:46p.m.

Govt better start looking at building all those new prisons because I will be buying my smokes off the black market when this happens. How many MORE robberies will there be where they are targeting cigarettes and alcohol.
Good on you Turia, you've put alot of thought into this one. This is for your own agenda, govt makes a fortune in tax from smokers. Get out of your car and walk... your pollution is doing more harm to my lungs than my smoking is doing to yours. It's p***ing me off that you keep trying to play god and you can guarantee that my vote won't be going your way. And John Key needs to stop being a 'brown tongue' by catering to the Maori party.

Crabby
04 Feb 2010 3:02p.m.

LOL!The government is enjoying playing GOD again!I agree with Chris's comments-why not ban them all together?I'll tell you why....they enjoy taking all your hard earned money.Alcohol will be the next to go up-I promise!So, New Zealanders, enjoy what's left of your freedoms,because pretty soon,we will have none!WAKE UP!!!!You are being had!

Smoker
03 Feb 2010 9:49p.m.

Katy, the government collected more revenue from taxation on smoking than smokers cost the government per year in health care.

ASH estimates the cost to be 1.5 Billion but they are a little extreme and probably have trouble differentiating between what is caused by tobacco and what is caused by alcohol.

Higher taxation just means extra money for the government to spend, however the joke is this... get rid of smokers completely and the government actually loses money.

Then its going to come looking for the lost revenue from everyone else.

Perhaps I will quit, just so that non smokers will have to pay higher taxes.

For me its still a savings, the government stops getting my $30.00 per week and I have to pay an extra 10 bucks in tax.

While I save $20.00 overall non smokers just lose an extra $10.00 which means I am still going to be $30.00 better off than a non smoker.

The governments going on and on and on about the need for revenue, this is just another way to get it.. its not justifiable... not with the logic Key is using, he needs to be a little bit honest and call this what it is... a revenue drive.

Oh, and if you make smoking illegal.. it becomes just like any other illegal substance... more commonly used than when it was legal because people always want what they arent allowed to have.

Particularly children.

Mark
02 Feb 2010 6:55p.m.

Smokes are killers,, and it's a hard thing to give up,,maybe if they were taxed at a higher price it may force many of the habit,, and force me to save so as i can buy another packet as i love em..

Chris
02 Feb 2010 4:50p.m.

I cannot believe smokers agreed to that. This will encourage people to buy cigerettes instead of food , dip into bill money and the younger ones will be encouraged to steal whatever to pay for smokes. What makes me laugh and I have said it all along, is that if smoking was as bad for you as what they are saying it is, ban it all together make it illegal, close the companies down. That will never happen because it is the smokers that are keeping the anti smoking people in a job and the government will miss the billions of dollars they are cashing in on. Wake up it is freedom of choice and here is the government taking that choice away. Smoking is actually a stress relief and very enjoyable. We all can't have exubriant salaries like politicians do or have all the lerks and perks they have, but one question remains, why don't they lower their wages and put it towards the anti-smoking causes. Just keep hitting the smokers. You don't hear about the alcohol, at least I can have 5 cigerettes and drive my car unlike alcohol.

Jan..
02 Feb 2010 12:54p.m.

I agreed with Annie..

Anne
02 Feb 2010 10:34a.m.

Price hikes won't stop people smoking, it is "FREEDOM OF CHOICE". At the end of the day it will be cheaper to buy marijuana than it will cigarettes, and then what are they going to do? Why dont they focus on bigger and more important things.

megan
02 Feb 2010 9:51a.m.

putting more tax on tobacco cleary doesnt mean that people are going to give up, its not that easy!! i dont think you realise that putting the tax up means that smokers will find the money in some other way, so will lead to major debt and crime. what are you going to do then??????????

Post a comment

Name:
Email: (Won't be published)
Comment:


3News Video 3News Audio

Post your opinion

3News - Adrian Leason, Peter Murnane, Samuel Land each faced charges relating to the damage of Waihopai spy base (NZPA)
Comments (54)

Waihopai acquittal: dangerous precedent or sensibility prevailing?

Three peace activists walked free Wednesday even though they admitted breaking into a Government spybase near Blenheim....