Tobacco price hikes "could spark robberies"

Published: 9:56AM Thursday April 29, 2010 Source: NZPA

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The overnight increase in the price of cigarettes could prompt a surge in dairy robberies, a tobacco company has warned.

A bill enacted under urgency in parliament yesterday on a vote of 118-4 has put in place a 10% increase in tobacco excise duty, which was effective at midnight. Two more 10% rises will follow in January 2011 and at the beginning of 2012.

When the two-year price hike cycle is complete, a packet of 20 cigarettes will cost about $14 and a 30 gram pouch of loose tobacco about $30.

Loose tobacco has been hit with a double whammy, an immediate increase of 14% to bring it into line with cigarettes as well as the 10% increases.

Imperial Tobacco New Zealand said the price hike could fuel the growth of illicit tobacco trade as well as a rise in tobacco robberies.

Illicit trade was the result of an influx of tobacco products that may not meet government regulations for health warnings and was a market anomaly that could not be regulated, the company said.

It increased the exposure of youth to cheap cigarettes without health warnings and had the effect of lowering the price paid for tobacco, resulting in less revenue for the government.

The company also said the increase in price could see tobacco sellers needing to install more security measures as the cost of the product could result in "temptation to criminals".

Meanwhile, anti-smoking campaigners are hailing the bill as a victory for health.

Associate Health Minister Tariana Turia brought the bill to parliament and told MPs the debate was going to be about life and death.

"The ghastly reality is that cigarettes kill one in every two long-term smokers," she said.

"In basic terms one in five New Zealanders are regular smokers - exposure to smoking in the home and tobacco use itself results in a staggering figure of around 5000 deaths a year."

Quitline, which helps people who want to give up smoking, said it was anticipating many more calls and Action on Smoking and Health (ASH) said it expected more people to kick the habit.

The Salvation Army applauded the move but, like Anderton, said it wished the government had the courage to act as harshly against alcohol.

The Royal New Zealand College of General Practitioners welcomed the price hike and said it would improve the health of many people.

What do you think about the increase in the price of tobacco products? Have your say on our messageboard

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  • BlueEggCarton said on 2010-05-29 @ 21:08 NZDT: Report abusive post

    My name is Becky and I am 13 yrs old.Like a lot of families in NZ my family is on the lower end of wage earners, on top of that my father is a smoker & has been for sometime.The new law has put great strain on us as a family as a lot of money already goes to purchasing cigaretes.It is not fair as even tho my father has tried to giv up numerous times b4 I can tell that he isnt going to happen in the near future. In the meantime we hav 2 sufer by not being able 2 aford various things financially!

  • ALSKI said on 2010-05-03 @ 11:08 NZDT: Report abusive post

    So, it was the Maori Party that instigated this tobacco tax hike and the government rushed the legislation through under urgency to appease them because they need their vote to carry their own. The Maori Party was formed to improve the lot of Maori, a racist attitude but neverthless that is what they should stick to and if there is a problem with smoking and Maori health then they should address that only and butt out of imposing their crusades on the rest of us

  • jezebell said on 2010-05-01 @ 14:44 NZDT: Report abusive post

    Sick and tired from hearing that smoking kills- What a lot of B.S.- diseases- as cancer kill, but not smoking. It is the same as saying that driving kills- you increase your chances of being in car crash by 80% when you drve a car, so- Driving kills!!!. And smoking increasing your chances of getting a cancer by what -30%? Did they forget to mention positive sides of smoking- of cause it is heresy!!! Let's start a witch hunt and burn smoking heretics at stake. Well done Great Inquisitors!!!!

  • leonie47 said on 2010-04-30 @ 10:30 NZDT: Report abusive post

    Well i think its not fair on the people that have allready tryed to give up smoking and have not succeeded.they are on medication that prevents them from trying the pills that are out. So are really struggling with the habit.This is what im going through at the moment and im sure there are others out there like myself and this price increase is so unfair.

  • ALSKI said on 2010-04-30 @ 09:09 NZDT: Report abusive post

    MOUTHGUARD if you thought i meant change to Labour, no way! Labour and National work hand in glove. Witness the buyback of the creamed off rail system.The taxpayer is now forking out again to upgrade the rolling stock and system ready for the next sell off to the "creamers" What's the betting that National will increase the alcohol tax "Due to overwhelming public concern about the unfairness of taxing tobacco to address health concerns and not applying the same to alcohol"

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