Image via WikipediaYesterday (on another site) I mentioned New Zealand had immediately imposed a 10% tax increase on cigarettes, with two further increases at Christmas over the next two years. Australia has imposed a 25% increase on cigarettes. A pack of 30's will increase byA$2.16 to A$15.00(NZ$19.00).
PM Kevin Rudd said many Australians had stockpiled cigarettes in anticipation of a price increase.
As I also mentioned yesterday tobacco companies will have to use plain packaging, after July1 2012.
Kevin Rudd also claimed the changes would cut (rather speculatively in my opinion) consumption by 6% and smoker numbers by 2.3%.
The extra A$5 billion over 4 years will be spent on public health and hospital reform.
While health groups support the changes, tobacco companies are preparing to challenge the changes.
A week after Anzac Day, it is great to see the two Anzac nations so firmly united in their determination to reduce smoking in Australia and New Zeaand and improve the health of their people.
Whether they will be successful is in the lap of the gods, but Kiwis and Aussies are pretty resourceful people and many would try and find ways around the price increases; by growing their own or obtaining cheaper supplies from overseas.
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