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Treasury not keen on tobacco tax hikes

Treasury pushed for a“tobacco control strategy” rather than excise tax increases when plans to cut smoking rates were discussed, papers show.The Government went ahead with excise tax increases, starting at 10 percent for factory-rolled cigaret

NZPA
Wed, 02 Jun 2010

Treasury pushed for a“tobacco control strategy” rather than excise tax increases when plans to cut smoking rates were discussed, papers show.

The Government went ahead with excise tax increases, starting at 10 percent for factory-rolled cigarettes in April, with two more hikes to come over the next two years.

Papers obtained by The New Zealand Herald under the Official Information Act showed Treasury recommended to Associate Health Minister Tariana Turia that the Government use a range of tools to prepare a“tobacco control strategy” rather than ramp up excise tax.

It said excise increases were“not highly effective” despite information from the World Health Organisation suggesting it was the single most effective way to encourage quitting and achieving a drop in smoking prevalence .

Quitline has reported calls increasing 100 percent since the price of tobacco went up.

NZPA
Wed, 02 Jun 2010
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Treasury not keen on tobacco tax hikes
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