Posted September 19, 2019 15:00:00 The Australian Government has announced it will introduce a cigarette tax of 25 cents per pack in 2018.
Key points:The government will introduce an excise tax of 10 cents on every cigarette pack and 20 cents on non-cigarette productsThe measure is expected to save $50 million in 2019The cigarette tax will be levied on all tobacco products and will be collected from retailers, including cafes and restaurantsThe move will see the price of cigarettes drop by 25 cents to $1.80 per pack and will see an excise levy of $10 per pack on tobacco products.
Under the proposed changes, the tax will also apply to non-cigarettes, which would mean that a pack of cigarettes would have to cost $1 less to buy than before the change.
It will be rolled out over the coming years and will affect the retail price of all tobacco.
“It’s about giving Australians the peace of mind that they don’t have to smoke and it will save them millions of dollars in 2019,” Minister for Health, Professor Paul Fletcher said.
“And it will make the health system safer and healthier for Australian families.”
The Government said the changes would have no impact on cigarette retailers or cigarette manufacturers.
“The tobacco industry will be able to make money from these taxes,” Mr Fletcher said in a statement.
“If a retailer has a 50 per cent markup, they can charge a lower price for their cigarettes.”
The changes are expected to help the tobacco industry to keep more of the tax revenue it gets.
The Government also announced it would allow smokers to keep cigarettes in the home for up to two years after they had stopped using them.
“For a number of reasons, it’s important that we get this right,” Mr Fisher said.
A tobacco tax has not been introduced in Australia before, and is not expected to be introduced for some time.
Topics:tax,government-and-politics,health,smoking,smoking-and‑diseases,community-and/or-society,health-policy,australiaFirst posted September 17, 2019 16:08:20More stories from New South Wales