Tobacco Tax Hike is Again Opposed by Treasury

Scientists declared that Treasury officials were doubtful about the advice from the Ministry of Health on advantages of tobacco tax increases in tobacco control policy.

As it is known in April the Government increased the taxes on cigarettes by 10 percent and on tobacco by approximately 24 percent. Both these raises will be the main topic to additional rises of 10 percent in each of the next two years.

Tobacco tax Hikes

The state department supposes that these new changes will reduce cigarettes use. They are sure that 40,000 fewer smokers will be and the prevention of 300 smoking-related illnesses by 2021.

But the Treasury suggested that the cigarettes prices will not be changed and the ministry prepares a tobacco control new method using a list of policy tools.

“A hike tax is required to be the most effective anti-smoking regulation, but it is not so effective,” declared the Treasury.

But World Health Organization is sure that increasing the price of tobacco through higher taxes is the only most effective way to decrease tobacco use and even can encourage cigarettes users to kick their smoking habit.

Professor Nick Wilson from Otago University at Wellington sa id: “Most probable the dictatorial mention is the World Bank saying prices and taxes were the most effective measure. The whole economic method is around if prices rise, demand goes down, so it’s nice bizarre to me that they say that.”

Christchurch tobacco expert Dr. Murray Laugesen declared that after a big increase in cigarettes tax in 2000, approximately 80,000 smokers quit smoking for even few months but then start smoking again, permitting little enduring effect on smoking influence.

This was because the tax on tobacco was not equalized. The tax increases would lead to decreased tobacco consumption, but the effect on smoking prevalence is unclear yet.

The Government-financed smoking Quitline also argued that approximately 2100 people had called it each week since the tax increase – a 100 percent increase.

Dr. Wilson added that to be most effective, tax rises needed to be larger – at least 20 percent – and standard.

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