Rudd’s Cigarette Tax

If the Rudd government had done the right thing, they would have done studies of cigarette customer buying habits before implementing this tax! It’s good to discourage smoking, particularly discouraging kids from becoming addicts, but I question this government’s motives. Like their alcopop tax, there is the heavy-handed social engineering, blatant tax grabbing to plug budget holes, and the unforeseen consequences. It might even be unlawful — banning companies from the right to have their brand logo displayed, except in tiny print at the bottom of the package. This is technically against the rules of fair business. Clearly, the government should have first looked at buyer habits and the effects on retailers, and then worked out how to compensate/offset any losses for small businesses. Rudd, as per usual, rushed this tax through with little thought or compensation.

“KEVIN Rudd’s tobacco tax is having a direct and debilitating impact on small retailers as smokers cut back on magazines, chocolate and soft drinks to buy cigarettes.

Small businesses say they are paying the price for the Rudd Government’s 25 per cent increase in tobacco excise, which added an average $2.20 to the price of a pack of 30 cigarettes from April 30.

Grocers, newsagents, petrol stations and convenience stores are experiencing little to no drop in cigarette sales, but slumping sales of confectionery, magazines, bottled drinks, newspapers, snack foods and other discretionary purchases, as the impact of rising interest rates, fuel prices and tighter credit squeeze wallets.”

‘Cigarette tax ‘choking’ corner shops as smokers cut back’

30 May, 2010


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