Bill to increase tobacco excise introduced

The introduction of a bill to increase the tobacco excise is a clear signal that this Government is serious about reducing the death toll from smoking, says Associate Health Minister Tariana Turia.

“Ultimately this is about saving lives,” says Mrs Turia.

The Government has called extraordinary urgency this afternoon to introduce a bill to increase the tobacco excise and expect the bill will be passed into legislation tonight.

“The move will put the price of cigarettes and roll-your-own tobacco up enough to save hundreds of lives,” says Mrs Turia.

The bill calls for tobacco excise to be increased in three steps over two years. It is proposed that the excise on cigarettes will rise immediately by 10% with a further 10% increase next January and a third increase of 10% in January 2012.

Also proposed is a 24% increase in the excise tax on loose tobacco followed by the same 10% increases in 2011 and 2012 as for cigarettes.

“We know that putting up the price is a powerful tool to reduce smoking. It forces people to cut back, but more importantly it provides a strong incentive for smokers to quit and helps dissuade young people from ever starting to smoke.”

“This represents a huge investment in the future of our country. Helping smokers to quit is a priority of this Government and one of our health targets,”
says Mrs Turia.

When passed into legislation the price increases will take immediate effect.

ENDS

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