Taxes go over the top ‘down under’

| May 4, 2016

The Australian government says that it will increase tobacco excise during each of the next four years by amounts that, according to various estimates, would raise the retail price of a pack of cigarettes to A$40-45 or above.

Smokers, through paying the additional excise levies, are expected to provide the treasury with A$4.7 billion during the next four years.

According to an Australian Broadcasting Corporation (ABC) story, in 2013 the former Labor government increased tobacco excise by 12.5 percent a year for four years, which helped raise the retail price of cigarettes to about A$25-30 a pack.

Now, the current government has decided to follow Labor’s policy by increasing excise by 12.5 percent for each of the next four years.

The ABC says that by 2020 the retail price of a pack of cigarettes is estimated to be ‘about A$40.

Other reports estimated that the price would hit $45 a pack or above.

The excise duty hikes were announced as part of the 2016 budget, which, according to a story in The Guardian relayed by the TMA, makes an allocation over two years of A$7.7 million to the Australian Border Force to try to prevent the illegal import of tobacco products.

The budget made provision also for cutting the duty-free allowance from 50 cigarettes to 25 cigarettes.

Category: Breaking News

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