New Zealand smokers to pay $20 for a pack of cigarettes

Smoking Cigarette

Considerable cigarette tax increase in present Budget will contribute to vulnerable teen smokers who are more sensitive to price rise, according to the Cancer Society.

Smokers will have to pay more than $5 for pack of cigarettes by 2016 after the Health minister Tariana Turia announced that cigarette excise tax would increase approximately 10% per year in each of the coming 4 years.

The given action would prompt people quit smoking and keep teenagers away from this hazardous habit, Mrs. Turia stated.

Smoking Cigarette

Woman lighting up a cigarette

Taking into account that inflation increases were included, the average cigarette packet price would ascend considerably from around $15 to more than $20 by 2016. Loose tobacco pack price would raise approximately $40 in the next four years.

Cancer Society tobacco control adviser, Skye Kimura, confirmed the fact that increases of tobacco price had an influence on smoking rates.

She said that they are quickly going to a Smokefree Aotearoa with today’s significant growth on the taxation of tobacco products.

She added that they know the charge per tobacco products is higher amongst more defenceless populations and that they are the ones most susceptible towards price growth.

Skye Kimura said that this exposed group is unlikely to have available income, so higher prices will surely make them to give up smoking.

The Cancer Society expected a percent of the tax income would go towards more support for people to stop smoking.

Tax growth followed a 40 per cent increase in tobacco excises since April 10. The first of the new tax increases would be on January 1.

Tariana Turia stated that these tobacco tax increases will have a major influence, especially as they come on peak of three previous tax increases.

She added that 10 per cent increase in the price of cigarettes will promote the decreasing of tobacco consumption by about 5 per cent. A wide range of smoking people will give up smoking and many more will cut down their tobacco consumption.

Finance Mininster Bill English declared that it is too expensive to purchase a pack of cigarettes and he foretold stock-pilling to take place before each tax growth ticked.

Government gathered about $1.2 billion per year from smoking products duties. This would ascend to around $1.7 billion once the new taxes were introduced.

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