A New Tax Hike on Cigarettes, Soon

Australian Government plans to raise taxes on cigarettes next month. So, if it would decide to do this step, smokers would have to pay $6.50 extra for 30 packs.

This idea of increasing cigarettes price comes with a goal to help to pay for premier minister (PM) Kevin Rudd’s health reforms.

So, only a tobacco tax hike could increase two-thirds of the $3 billion which Mr. Rudd needs to invest the financial inducements he has proposed the states to approve the healthcare reforms.

But in case the price of a pack will rose from approximately $13.50 to $20 in within three year period, then more than three million smokers would be affected.

However, officials believe that such a massive rise would reduce the smoking among million of smokers within a decade, and also helping the Government to save an amount of the $31 billion for inhabitants health.

This hike would be the first rise in the cigarettes tax in more than a decade and would also bring Australia into the rope with the other countries which made such a decision long time ago.

As it is known, Australia is the only country with lowest tobacco tax rate in the developed world at 68 percent, unlike others at 75 to 80 percent.

Last year, Health Minster Nicola Roxon supported the Coalition plan for to raise the tobacco tax and she demanded five times her department for introduce a raise in tobacco tax.

Researchers found that 88 percent of Australians accepted such a tax hike while the money took from tobacco was spent on inhabitants’ health.

That’s why Australian Government should find an extra $3 billion in income for to invest its promises on cigarettes tax hike. It also will need to find approximately $15 billion to fund the new reforms between 2015 and 2020 too.

The Government would not say its statement on tobacco tax but Ms. Roxon admitted that the Government would earn more money for health if it will decide to raise the cigarettes tax.