Prices for Cigarettes in Australia Increase

Published on December 9th, 2015 00:00
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Smokers buying their cigarettes in Queensland, Australia, are from today having to pay up to $3.05 more for a pack of 50, according to a story in the Rockhampton Morning Bulletin. In the case of some cigarettes, the retail price of a single cigarette is now more than A$1.
The most recent national tobacco excise raise of about 12.5 %, effective these days, will find smokers paying an additional $1.52 in tax for a package of 25 and approximately $3.05 for a package of 50.

The most recent yearly boost in the tobacco excise is approximately the third one in a four-year set of raises that extends until next year.
On the other hand, the price of cigarettes is also amplified twice per year in accordance with the rate of average weekly revenue.
This means cigarettes are increasing by around 20% each year, British American Tobacco representative Scott McIntyre explained.

“Numerous Australians smoker less frequently or stop altogether, after the tobacco tax boosts annually,” Clift was quoted as stating, though it was not obvious whether she considered that cutting back provided a health advantage.
“Research demonstrates the tobacco excise boost in 2010 triggered smoking rates to decrease by around 11 %.
“Facts also indicate that a tax boost on cigarettes is mainly efficient among people on lower incomes and young people around Australia…”
The price boost can just force people into buying less costly cigarettes, Mr. McIntyre claimed.
"The price increases will make smokers look for less costly alternatives in the tobacco market," he stated.
"The low priced cigarette segment has grown up 94% within the last five years and 16% in only the last six months mostly because of this series of huge excise boosts.
"As smokers desire cheaper alternatives, we are obligated to compete, which subsequently leads to huge competition at the low end of the market.
"We don't feel the intention of the government's ad hoc tax boosts is to trigger greater competition at the bottom end of the market permitting smokers have access to an increasing range of more affordable cigarette brands."

By Robert Smith, Staff Writer
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