TOBACCO and cigarettes have gone up over 13 per cent in price in the last 3 months according to the Consumer Price Index.
The upcoming budget signals more bad news for smokers with Prime Minister John Key saying that he was not ruling out a further increase in excise tax.
Chris Pike, Government statistician, said the 0.5 per cent rise in the CPI was mainly due to the increase in tobacco and cigarette prices
The rise is set to save the economy up to $73 million, says Chief executive Paula Snowden of the Quit group.
The Government is estimated to make $200 million more than the previous $1billion on cigarette and tobacco tax.
New Zealand’s Tax rate is now 72% of the cost of a packet of 20 cigarettes.
Australia, Greece, Netherlands and Germany also have the same amount of tax .
Data collected from World Health Organisation.
Around 20 per cent of kiwi adults smoke. The figure is higher amongst the Maori population with 40 per cent smokers.
This has prompted the Maori party to advocate the increase.
$57m is currently being put into tobacco control and cessation programs according to the Ministry Of Health.
The Government run program the Quit Group estimates the savings a smoker could make by quitting is around $4500 a year.
It hopes the increased cost in conjunction with cessation programs will encourage more smokers to kick the habit.
It estimates that it will force 40,000 out of 900,000 smokers to quit.
Tobacco companies are not happy with the rise.
British American Tobacco says the heavy reliance on tobacco tax increases could result in the emergence of a black market in tobacco products in New Zealand.
A street survey in Wellington indicates the public share a similar negative view of the increase.
“It may be grown illegally with the profits going to organised crime,” says Wellington student, Josh Wright, 22.
Sam Fiddus, a radio student, 20 says the people that are addicted will continue to pay the cost regardless.
Kristen Patterson, also a student, 31 feels increasing the tax is exploitative.
“The government should do more to combat the recession rather than taxing the addicts.”
The upcoming budget signals more bad news for smokers with Prime Minister John Key saying that he was not ruling out a further increase in excise tax.
The CPI measures the changing price of goods and services purchased by New Zealanders.
