Albo’s new cigarette tax: next week’s budget includes THREE more tobacco tax increases in a row
- Price increases will generate $3.3 billion in revenue
- The first increase comes in on September 1
The Albanian government has announced that next week three tobacco price increases will enter the federal budget — raising $3.3 billion in revenue — and a ban on recreational vaping.
“Tobacco taxes will be increased by 5 percent per year from September 1 for the next three years,” Health Secretary Mark Butler said Tuesday afternoon.
‘We know that a more expensive cigarette is an unattractive cigarette. We will also align the tax treatment of tobacco products so that products such as roll-your-own tobacco and manufactured sticks are taxed equally.
Mr Butler said the changes will bring in an additional $3.3 billion over the next four years, including $290 million in GST payments to the states and territories.
He said it would help “support our health system and the health of current and former smokers and vapers.”
The Albanian government has announced that next week three tobacco price increases will be passed into the federal budget, raising $3.3 billion in revenue. The photo shows a smoking woman
The minister said the previous coalition government raised tobacco taxes by about 125 percent during its term in office.
“Excise taxes stopped increasing around 2020 and since then excise increases have lagged inflation, especially last year,” he said.
“We are determined not to see the price of cigarettes become more attractive relative to CPI (inflation).”
Mr Butler said the Labor government wanted to continue the ‘price signal that (former Occupational Health Secretary) Nicola Roxon argued so convincingly and comprehensively 10 years ago’.
Recreational vaping is being banned as the government tries to prevent the next generation of nicotine addicts.
The government will work with the states and territories to stop selling vapes in retail and convenience stores while making it easier to get a prescription for therapeutic use.
To address the growing black market, the government will raise product standards for vapes, including by restricting flavors and colors.
It calls for pharmaceutical-like packaging, a reduction in permitted nicotine concentrations and volumes, and a ban on single-use vapes.
Mr Butler revealed the scale of the public health problem, with children under the age of four having been reported to Victoria’s poison line after using a vape.
“This is a product aimed at our children, which is sold alongside lollipops and chocolate bars,” he said.
“Vaping has become the number one behavioral problem in high schools and it is becoming widespread in elementary schools. This must come to an end.’
Health Secretary Mark Butler said: “Tobacco taxes will be increased by 5 percent a year from September 1 for the next three years.” Photos are past excise tax hikes on tobacco
More to come…