Aussie tobacco tax cuts would cut crime and save lives

Responding to Australian political parties competing to slash tobacco excise to undercut the black market, with One Nation proposing a 75 percent cut and the Liberal-National Coalition reportedly considering an 80 percent cut, Taxpayers’ Union spokesman James Ross said:

“Across the ditch, political parties are racing each other to cut tobacco tax and undercut the gangs. In New Zealand, the Government keeps widening the price gap between legal and illicit tobacco every year.”

“High taxes have created a thriving black market in Australia, where 80 percent of tobacco is illicit, up from just 12 percent in 2017. We’re not there yet, but with black market durries making up more than a third of tobacco consumption here, we’re heading the same way.”

“Legal packs cost Kiwis between $35 and $50, while illegal packs cost just $13. That price gap is a gift to gangs, while cheap unregulated tobacco risks undermining the switch to safer alternatives like vaping.”

“New Zealand’s Government needs to follow the evidence. Cut tobacco excise enough to squeeze the gangs’ margins, keep vaping cheaper, and make the legal market competitive again.”