Fed: 25 per cent tax increase on cigarettes from midnightl

AAP General News (Australia)
04-29-2010
Fed: 25 per cent tax increase on cigarettes from midnightl

SYDNEY, April 29 AAP - The tax on cigarettes will rise by 25 per cent from midnight,
as part of the federal government's crackdown on smoking.

The government will also force tobacco companies to use plain packaging from July 1, 2012.

A government statement says the changes will cut tobacco consumption by six per cent
and the number of smokers by two or three per cent - about 87,000 Australians.

The 25 per cent tax increase will mean an increase of about $2.16 for a pack of 30.

Raising tobacco excise will generate an extra $5 billion over four years, the government
says, and the money will be directly invested in hospitals.

Internet advertising of cigarettes will also be restricted, and an extra $27.8 million
will be spent on anti-smoking campaigns.

New legislation will prohibit logos, brand imagery, colours, and promotional text other
than brand and product names in standard colour, position, font style and size, the government
statement says.

"The new branding for cigarettes will be the most hardline regime in the world and
cigarette companies will hate it," Prime Minister Kevin Rudd told reporters in Sydney
on Thursday.

But he said he made no apology for that.

AAP mdg/wjf/jlw

KEYWORD: TOBACCO TAX UPDATE

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