Increased cigarette tax called for

Press, 16 July 1986, Page 2

Increased cigarette tax called for

PA Hamilton Cigarette taxes should be increased after the announced expected $5 million profit for one cigarette company, according to the 'Tobacco Advisory Council. The executive secretary, Mr Trevor Reeves, said the anti-smoking lobby group was alarmed at the announced indication of an increase in

profit by Rothmans Industries in the year to July 31 of $5 million compared with last year’s $1.4, million. This information should lead the Government to further curb the tobacco companies “freely profiteering at the expense of the health of their victims, ordinary New Zealanders of all ages,” he said.

The council would like the Government eventually to outlaw the produce tion and distribution of cigarettes in New Zealand.

However, as a first step the council is urging the Government to adopt policy measures passed by the Labour Party at its annual conference last year.

This includes increasing substantially taxes on the sale of cigarettes, so that the retail price was at least 25 per cent above its present level, Mr Reeves said.

This would bring cigarette prices to the level they were 23 years ago, when compared with the gross domestic product, thus placing cigarettes further out of reach of young people.

The council is also urging the Government to remove tax concessions allowed for the promotion of tobacco products. Mr Reeves said the industry spent $9 million each year on advertising and sponsorship, resulting in tax rebates of $4 million. The council also wants all exemptions which apply to tobacco removed from the Toxic Substances Act.