‘NO HARM DONE’

Press, Volume CX, Issue 32439, 28 October 1970, Page 18

‘NO HARM DONE’

(N.Z. Press Association) WELLINGTON, Oct. 27. “Of all the products at present subject to indirect taxation, it is clear that cigarettes and tobacco can be subjected to additional tax without harming in any way the general welfare of the community. “In fact, it is increasingly argued that discouraging the consumption of these commodities is likely to make a positive contribution to general health,” the Minister of Finance (Mr Muldoon) told Parliament tonight This statement, made during Mr Muldoon’s “mini-budget” tonight, brought general laughter from the House.

“The duty on the basic range of cigarettes will be

increased from $8.90 a' thousand to $11.90 a thousand as from tonight,” said the Minister. “This represents an increase in tax of 6c a packet of 20 cigarettes. “Proportional Increases will be applied to heavier cigarettes, cigars and tobacco. The rates of duty will be increased by $1 per lb for heavier cigarettes, by 72c per lb for tobacco and by 60c per lb for cigars. The additional tax on tobacco is equivalent to 9c per 2oz packet “Prices of cigarettes and tobacco may not be increased until approval is given by the Price Tribunal. The new prices are not expected to operate until existing stocks have been substantially cleared.”