WELLINGTON, New Zealand ? New Zealand has revealed its zeal to stub out smoking in all forms within 13 years by raising tobacco taxes 40% over a four-year period, the Associated Press reports. New Zealanders already pay some of the highest tobacco taxes in the world, but the new hike will push the average cost of a pack of cigarettes up $15.
Health officials had toyed with the idea of boosting the tobacco tax to $75 a pack, but opted for the lower 40% tax increase instead. In addition, come July, retailers will have to put cigarettes below the counter rather than on display.
The anti-smoking regulations seem to have the desired effect of lowering smoking rates, as the rate of smoking among New Zealand adults dropped from around 30% in 1986 to around 20% in 2012. Cigarette sales have plummeted as well.
However, British American Tobacco warned that higher taxes will fuel a black market for cigarettes. ?Consumer demand is far better served by legitimate companies than by the illegal operators that will surely grow as the government makes it increasingly difficult for people to buy their product of choice,? said Susan Jones, who heads corporate and regulatory affairs for the New Zealand branch.
The country currently taxes its cigarettes by 70%, compared with on average 80% in France, 64% in Australia, 45% in the United States, and 41% in China.
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