Financial News
- 23 April 2012, 13:30
Pack Of Cigarettes 'May Rise To $100' In NZ
The cost of a packet of cigarettes in New Zealand could rise to as much as $100 dollars - around £50 - by 2020 amid moves to stamp out smoking.
The Ministry of Health wants New Zealand to be smoke free by 2025 and the suggested increase gives the first hint of the drastic measures being discussed.
A document released under the Official Information Act to the country's 3 News website features a number of pricing scenarios - with the most extreme showing a single cigarette costing the equivalent of £2.50.
One option being considered is a 10% increase on a pack of 20 cigarettes year-on-year from 2013 to 2025, meaning it would cost $40 (£20) a pack by 2024.
But a second scenario would see packs at $100 each by 2020, achieved by an immediate shock rise of 30% to 60%, with on-going increases of 30% each year after that.
This model would reach the 2025 target to stamp out smoking completely, but is described in the paper as "probably unrealistic".
The most likely model would see a shock tax increase next year, and then a 10%-a-year rise, which would mean a packet of cigarettes costs around $60 (£30) by 2025.
Other ideas discussed in the document include regulating tobacco as a highly toxic substance, a ban on smoking in cars with children, a doubling of anti-smoking media campaigns and removing tobacco from duty-free sale.
The briefing paper said: "If we are to continue to lower smoking prevalence we need to both increase the numbers who successfully quit smoking, and reduce smoking initiation among young people.
"Tobacco taxation is the single most effective intervention available to drive down smoking prevalence figures."
The Ministry of Health has said that the paper is an internal policy discussion and does not represent Government policy.
what do you think?
David Sharky
Crikey. Is this a softer version of totalitarianism? e.g. the state imposing their views on the public by outrageous price increases?
Gillian Stafford
I'm not a smoker but I imagine George - what , me smug ? - Osbourne is salivating right now at the mere thought of all that excise duty even into another nations coffers !
Windows Live User
What a move. It will create an underground market larger than the drugs racket No. It's not the answer - Non smoker
EQINOX187 .
These people need a reality check they realy do. The fact is raising the price will not stop people smoking all it will do is force them to cheaper alternatives and the fact is the activity is highly adictive and often often the only pleasure some get. Like here the price has gone up to a point that my friend cant afford to smoke but did this stop her no all she does now is buy thm dodgy cheap ones at the market that are probibly doing 4x the damage
David Wragg
Some of the steps, such as banning smoking in cars with children present, are sensible, but the increases proposed will simply lead to wholesale smuggling. I have never smoked, but these plans are extremely stupid.
robert
I am also a non smoker david.If they dont want people to smoke why not stop producing cigarettes and all related tobaco products,problem solved.
Gary W Beard
Zeig heil! for you ze choice is over.
Adrian Wagstaff
God created the Earth, we are informed. If so, God covered the Earth with tobacco plants and all sorts of strange plants, which, when burned, produce ... "pleasant" ... aromatic smoke. When jungles burn, the plants burn, when forests burn, from lightning strikes, the same events cause similar plants to burn, such as poppy plants, wild marijuana plants, wild cocaine plants. God planted all this stuff. God makes those things burn, thus producing aromas in jungles and forests. Some forests are full of strange mushrooms. Natural fires cause those to emit ... so we are told ... pleasant aromas. Governments are banning smoking in heavily polluted traffic ridden town centres??? ...
Edgar Beckett
God moves in mysterious ways, his wonders to perform.
James Poulton
If they are doing this for health reasons, then a mcdonalds should cost over £50 too. Its only fair.
Roberta Grieve
How bloofy daft. IT WON'T WORK
Gavin Nellis
how wont it work? are you saying you would still smoke if you lived there and had to pay 100 dollars a packet ?
Dorrien Phillips
No people will continue to smoke by buying their cigarettes from underground sources...and god knows what rubbish will be in those...therefore causing even more illness.
Edgar Beckett
Trying to save a few hundred million lives here and a few more billion there, any one would think the world was underpopulated.
Richard Gould
So, is the plan to heavily tax and eventually ban all activities which are hazardous to health??? They will have to ban alcohol (Prohibition didn't work in America). They would have to ban all vehicles which emit toxins (No cheap alternative so people will lose their jobs when they can't travel to their workplace). They will have to ban all emissions from industry (Power stations will have to shut down, along with certain manufacturing industries). Sport causes injuries so they will have to ban this. These plans will cost jobs with no alternative so the strain on the taxpayer will increase. Guess we will all have to live in tents and chew grass.
Steven James Farmer
I'd sooner live in a tent and chew grass than see my mother struggle to breath when she raises her voice or walks across the room purely because shes been smoking for 40 years.
Richard Gould
Steve, I empathise with you but at the end of the day there are two points to consider: 1. She chose to smoke herself, nobody forced this upon her and, right or wrong, it was her "democratic" right to make that choice. 2. If a government takes a stance on one health issue they should take the same stance on all other health issues - it costs millions to the Health Service for drink related problems, lung disorders due to other man-made emissions etc and it costs millions to manage or police problems caused by excessive drinking etc. So, either have a level playing field or leave alone.
John Stedman
I'm with Richard on this one.
Steven James Farmer
Good on the kiwi's
goldwing uk
Wow they got some harsh tobacco police out there.
Charles Korszewski
£100 a packet think of the profit in that, watch all our so called leaders start buying shares in the tobacco industry,now there,s a new way to keep us poor and them rich
Danny Cooper
Haha that means people could possibly earn more by robbing a newsagents than a bank! Will they have fort knox like buildings made to sell these cigs?
Elvin Eastwood
are we fetching back smugglers cove lmao
susan
It won't stop them smoking some people would sell everything they own for a ciggie, more fool them. Let them get on with it .
Name witheld
11:01am on 23/4/2012
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