The Price of a Cigarette Package to Cost Over $20

Published on August 20th, 2013 00:00

The price of an ordinary cigarette package will be raised over $20 in accordance with the plan the Government claims is focused at reducing smoking rates. However Labor will mainly spend a part of the money left for tobacco related diseases, despite explaining the rise as a public health project. According to the plan, tobacco excise will increase by around 12 % just a year from December 2013, with even more boosts on September in the coming three years.

A package of 20 Winfield Blue cigarettes will increase by approximately 98c this coming year and will value at $5.25 far more at the end of 2016, based on government plan. The boost is above of standard indexation increases. When he was Prime Minister, Kevin Rudd increased tobacco excise by about 25 % in 2010, in a step that health representatives state result in an 11 % decline in smoking rates. Back then, the boost was redirected into the health budget. However at this point, Treasurer Chris Bowen would only agree to spend most of the money on smoking-related illnesses.

Mr. Bowen will declare about the tax increase within a mini-budget that is predicted to consist of other strikes on businesses and families in order to assist the authorities create a break in tax profits.
Opposition leader Tony Abbott forecasted that the authorities would increase more taxes in order to fill up the gap in its coffers. "It can't handle its personal spending, thus it almost always strives to raise taxes on the Australian people," Mr. Abbott stated.

The tax increase on smokers has also enhanced calls from health authorities for a plain tax on alcohol, which might observe the cost of wine raise. Cancer Council chief Ian Olver supported the plan of tax raises on both cigarettes and alcohol. "Discouraging cigarette use by raising the excise is mainly efficient among people on lower incomes and teenagers," Professor Olver added. "A common package of cigarettes costs fewer than going to a film.”