Tuesday 9th May 2000
Rodney Hide
Media Release -- Economy
ACT Finance Spokesman Rodney Hide said today that the Alliance-Labour Minority government’s shock $1 hike on cigarettes
broke the Labour party’s pledge of no new taxes. “They never signalled this tax in the run-up to the election. They
never signalled it at any stage this year. “There are two forces at work on this government’s attack on low income
smokers. Number one force is Prime Minister Helen Clark’s drive to eliminate smoking totally. The second force is
Michael Cullen’s desperate drive for cash. “Dr Cullen’s tax hike will raise an extra $270 million over the next three
years. He needs every dollar he can lay his hands on. “This tax hike is theft by stealth. Helen Clark should have had
the courage to announce the $1 hike on cigarettes before the election. “If this was just a health issue and not a
revenue gathering exercise, the government would cut taxes elsewhere to compensate for the extra cash hauled in by this
bombshell tobacco tax,” Mr Hide said. ENDS
For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at
act@parliament.govt.nz.