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House goes into urgency to pass large tax rises on tobacco

Parliament has raised the excise tax on tobacco after going into urgency on a surprise legislative move.

Associate Health Minister Tariana Turia announced the measure just after 4.30pm on Wednesday. It was passed 118-4.

The Excise and Excise Equivalent Duties Table (Tobacco Products) Amendment Bill provides for or tobacco excise to be increased in three steps over two years.

Tax on cigarettes will rise immediately by 10% with a further 10% increase next January and a third increase of 10% in January 2012. This took the price of a packet of cigarettes to around $11 a packet from midnight.

Being hit harder is loose-leaf tobacco – an immediate 24% increase in the excise tax is to bring it into line with manufactured cigarette prices.

As with manufactured cigarettes, further rises of 10% the next two years will follow.

More by Rob Hosking

Comments and questions
5

Global Marxism rolls on.

Just how much legislation has this current government passed under normal conditions? Seems like it only does things through the swift method, denying due process and democracy in the process.

Lets face it this has as much to do with health and prevention and more to do with revenue generation.
We should seriously consider legalised marijunana, get it out of the black economy and make it contribute to the tax base.
I wonder if Morgan, Weldon and Co. considered doing this during the Tax Working Group discussions.

Would it be possible to have the same urgency apply to the affairs that really matter.
A halt to the impending ETS.
A halt to the maori grievance issues.
Abolishment of working for families and its twisted effects.
Swift implementation of a level taxation rate for personal, companies and trusts. Better still a flat tax across the board.
A massive effort to reduce government spending to 30% of GDP.
Plans to reduce half of the adult population that are on welfare.
The immediate introduction of competition to ACC and the accountability for all the billions lost in investments.
A refusal to borrow any more overseas funding unless its capital investment.

Just a few things that immediately come to mind.

I have brought 1,000$ worth of smokes with my student loan, i hope to sell it off for a small profit, with no risk.