New Zealand: More Pain in the Pocket for Smokers

Source from:  TVNZ 01/02/2014

The new year has brought more pain in the pocket for smokers with another tax increase that pushes up the price of tobacco.

This is the third consecutive January that tax on tobacco has increased by 10% and increases will also be implemented in January 2015 and 2016.

The tax hikes are part of the Government's initiative to push the cost of the average packet to more than $20 by 2016.

The tax increases are an important part of achieving the goal of a smoking prevalence in New Zealand of less than 5% by 2025, Quitline chief executive Paula Snowden said.

"The cost of tobacco is a big issue for people and when it goes up it prompts hundreds of smokers to seek help to quit," she said.

The 2013 census showed the percentage of the population that smokes has dropped from 20.7% in 2006 to 15.1% in 2013. In 2006, 598,000 Kiwis smoked and that has now dropped by nearly a quarter to 463,000.

"Tax increases, along with all the other measures such as smokefree environments and cessation support, are working," Ms Snowden said.

This time last year Quitline helped more than 7000 smokers and by midday today the call centre was fielding hundreds of calls.

"New Year's Day can be a day to start and it can be a day to fall off the wagon as well so we are ringing up and supporting people," Ms Snowden said.

Ten years ago one packet would cost around $8 and the price today has more than doubled to $16. The impact of today's tax increase on the cost of cigarettes will be determined by the tobacco industry.

Anti-smoking groups calculate an average pack-a-day smoker stands to save more than $7000 a year if they quit. Enditem