Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

New Zealand announces 40% hike in tobacco taxes

 

Ap
Thursday 24 May 2012 14:57 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

New Zealand's government has squeezed smokers more than ever by announcing a 40% hike in tobacco taxes over the next four years.

Prices there are already among the highest in the world, and by 2016 they will top 20 New Zealand dollars (£9.60) a pack on average.

Officials hope higher taxes and new restrictions will bring the nation of 4.4 million closer to a recent pledge to snuff out the habit entirely by 2025. Other countries have lauded the idea of trying to wean their populace off tobacco, but few, if any, have been willing to put a date on it.

Health officials even considered raising the cost of a pack of cigarettes to 100 New Zealand dollars (£48). Although that idea was dismissed, another measure, which will force retailers to hide cigarettes below the counter rather than putting them on display, will come into effect in July.

Smoking rates among New Zealand adults have fallen from about 30% in 1986 to about 20% today. Cigarette sales have fallen more sharply, suggesting that even people who still smoke have cut back.

Opponents say the hikes could drive some low-income people to commit crime to support their habit. They want the government to provide more support and alternatives to smokers if it is serious about making them quit.

The New Zealand branch of cigarette company British American Tobacco said the tax increases will force consumers to turn to the black market.

Susan Jones, head of corporate and regulatory affairs, said: "Consumer demand is far better served by legitimate companies than by the illegal operators that will surely grow as the government makes it increasingly difficult for people to buy their product of choice."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in