New Year to see hike in cigarette price

Published: 9:20AM Sunday December 18, 2011 Source: ONE News

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Smokers will be paying more for tobacco from New Year's Day, in another massive push to get more Kiwis to give up smoking.

The cost of a standard 20-pack of cigarettes will rise by 14.6% on January 1 2012 shooting through the $15 price tag.

The rise is the result of the annual adjustment to the excise duty, the third since June last year.

Quitline spokesman Bruce Bassett told the NZ Herald the past two tax increases saw about a 93% increase in demand for Quitline services.

"I think there are price thresholds and when the prices get to a certain point, it shocks people into realising how much of their discretionary income is being put into feeding their addiction."

The Government brought legislation to Parliament to raise the excise duty on tobacco in 2010.

It saw an immediate 10% price increase for cigarettes followed by another 10% every January up until 2012.

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