Costello right to review Tobacco Tax failure after years of failed hikes

The Taxpayers’ Union is welcoming Associate Health Minister Casey Costello’s comments that the Government is considering a review of tobacco excise.

Taxpayers’ Union Executive Director Jordan Williams said:

“Tobacco tax has become a textbook Laffer Curve problem. The Government has pushed excise so high that it is now losing revenue, while criminals are cashing in.”

“A third of tobacco smoked in New Zealand is now illicit and heavy smoking is at its highest level since 2012. That is not a public health success story.”

“You cannot tax your way out of a black market. The Government needs to cut the price gap feeding illicit trade, toughen up enforcement, and rebuild a sustainable excise regime that protects communities instead of enriching gangs.”