Latest news with #tobaccoTax
RNZ News
30-06-2025
- Health
- RNZ News
Cook Islands Cabinet approves significant increase in tobacco tax
By Losirene Lacanivalu , Cook Islands News According to Cook Islands' 2022 STEPS survey, 35.5 percent of adults aged 25-64 are current smokers. Photo: RNZ / Rebekah Parsons-King Cook Islands Cabinet has approved a significant increase in tobacco tax, aiming to reduce smoking rates and combat non-communicable diseases. The Cabinet has recently approved the initiative set by Ministry of Health to increase the tobacco tax by NZ$125.50 per 1000 cigarettes or kilogram of tobacco annually for the next three years. Additionally, a five percent increase has been approved for each subsequent year. The tax increase will come into effect after the proposal is tabled and passed in parliament, according to the Ministry of Finance and Economic Management. The new tobacco taxation represents a 30 percent increase in the average price of a pack of 20 cigarettes over the first three years, raising the price from NZ$26.88 to NZ$35.54 by July 2027, says TMO. According to modelling estimates by the World Health Organisation (WHO), this tax is also anticipated to lower the smoking rate from 34.50 per cent to 33.4 per cent. According to Cook Islands' 2022 STEPS survey, 35.5 percent of adults aged 25-64 are current smokers. Smoking is more prevalent among younger men aged 18-44 (44 per cent) compared to older men aged 45-69 (26.2 per cent). TMO states that although the overall number of tobacco users in the Cook Islands has decreased over the years, young people are alarmingly initiating tobacco use at an earlier age, from an average of 19.7 years in 2015 to 17.8 years in 2022. It adds that tobacco use is one of the leading risk factors for non-communicable diseases (NCDs), such as cardiovascular diseases and cancer. "By making tobacco products less affordable, we aim to decrease tobacco use and its associated health risks, towards a healthier, smoke-free Cook Islands," Minister for Health Vainetutai Rose Toki-Brown said. However, prominent Cook Islander Mike Tavioni begs to differ, arguing that if the government, through the Ministry of Health, doesn't see the tax increase as profitable, then it should stop importing tobacco altogether. "On the left hand, the government agrees for the importation of cigarettes. And then on the right hand, the government through health says, don't smoke." Tavioni believes if the source - the importation of tobacco - is eliminated, people will be less likely to smoke. "Hypothetically, if the price of cigarettes from the factory is $5, so the government is making, what, 600% profit, right? Therefore, 200% goes to making sure the people with cancer are comfortable. The other 400% is for the government budget," he argued. "If it's not profitable to the government, why don't the government just wipe it? Why don't the government just say no more?" Tavioni says the government should consider increasing the tax on sugary drinks such as Coca-Cola to tackle NCDs. "The cigarette is just profit-making for the government. So if the government is convinced that it's bad for its people, then stop importing it. But they won't … Because it's lucrative, profitable for government, they allow it to be imported." A Cook Islander, who wished to remain anonymous, welcomed Cabinet's decision to increase the tobacco tax. The person believes it is a positive step that will lead to fewer smokers and benefit non-smokers as well. As a passive smoker, the person feels they are exposed to even more harmful chemicals when around smokers, putting them at greater risk of health issues. According to TMO, to address the significant burden of NCDs and tobacco use in the country, the Cook Islands has implemented strong policies and plans, including the Cook Islands Tobacco Control Action Plan 2023-2031 and the Tobacco Products Control Amendment Act 2024. The increase in tobacco taxation is a key component of the Tobacco Products Control Action Plan, says TMO. Minister Toki-Brown thanked the Cabinet Ministers for prioritising health, "through the approval of these tobacco taxation reforms". "I also thank Te Marae Ora Ministry of Health for its commitment to a better and heathier future for our children and people, the Ministry of Finance and Economic Management and WHO for their close collaboration." The Cook Islands has been a party to the WHO Framework Convention on Tobacco Control (FCTC) since 2004. Because of the Cook Islands' strong tobacco control measures, they were awarded the World No Tobacco Day Award 2025 by WHO last May 2025. Health Secretary Bob Williams accepted the award on behalf of Te Marae Ora from WHO's Director-General Dr Tedros Ghebreyesus on 19 May at the World Health Assembly in Geneva, Switzerland. "We congratulate the Cook Islands on their decision to increase tobacco taxes and their overall robust and comprehensive measures in tobacco control. Indeed, the World No Tobacco Day Award is well-deserved," said Lepaitai Hansell Blanche, officer-in-charge of the WHO Representative Office for Samoa, American Samoa, Cook Islands, Niue and Tokelau. "The Cook Islands' efforts set a strong example for the rest of the region to follow. We urge other Pacific nations to adopt similar measures and work together towards achieving tobacco- and nicotine-free islands." -This article was first published by Cook Islands News .
The Guardian
04-06-2025
- Health
- The Guardian
Chalmers says cheaper cigarettes will not solve illegal tobacco boom, dismissing NSW premier
Jim Chalmers says making cigarettes cheaper will not solve the booming trade in illegal tobacco, dismissing the call by the New South Wales premier, Chris Minns, to slash taxes on smoking. Minns joined Victoria's state government in blaming the high tobacco excise for a spike in organised crime that has led to arson attacks on businesses and stretched police resources. The NSW premier said his state will propose a cut to the federal excise to deter illegal tobacco sales at the next health ministers' meeting later this month, even as he admitted that it was 'probably not a popular thing for a premier to say'. 'There's been a tax on cigarettes for decades, and I understand that,' he said. But he said the excise had 'radically increased' over the past five years and the high taxes were causing people who would never usually break the law to buy illegal tobacco. Sign up for Guardian Australia's breaking news email 'They wouldn't break the law in a million years, but they're being dragged into a black market where they go to the store, they can either buy a $17 or $20 packet of illegal cigarettes, or a $60 packet of cigarettes.' The excise accounts for three-quarters of the price of a packet of cigarettes, making them among the most expensive in the world. On Wednesday, Chalmers joined the federal health minister, Mark Butler, in rejecting the view that cheaper cigarettes would solve the growing black market for tobacco. 'I don't think the answer here is to make cigarettes cheaper for people,' the treasurer said. 'I think the answer here is to get better at compliance. And the [federal government] has to come to the table … with hundreds of millions of dollars in new funding to try and combat the scourge of illegal tobacco.' 'It is a substantial public health challenge still in our economy. It's also a law and order challenge, and we're addressing both of those things simultaneously.' Butler said overseas evidence showed there was no clear link between lower prices and less crime. 'Price has an impact, but if you look at other countries that have substantially lower priced cigarettes than Australia – the US, some European countries, most in Asia as well – they also have thriving black markets,' Butler said. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion 'Because organised criminal gangs, no matter where they are, no matter what the price of legal cigarettes, recognise that black market cigarettes are a very easy way for them to make money. And the only way to stop that is to enforce good laws against bad people.' But Victoria's minister for casino, gaming and liquor regulation, Enver Erdogan, said the high price of legal cigarettes was one of 'multiple factors' driving the growth of the illicit trade, which has sparked a turf war in the state that has seen more than 100 businesses firebombed. 'The price differential between the legal and illicit product is large. Accepting that tobacco is an addiction, and so for many people they're going for the cheaper product, I think we do need a national approach,' Erdogan said. National figures released on Wednesday revealed a drop of almost 16% in spending on tobacco products in the year to March, which Chalmers said reflected both the increase in illegal trade as well as more Australians quitting smoking. 'We have to resist the temptation to think it's either 100% people giving away the darts, or 100% illegal activity,' the treasurer said. 'It's both of those things. One of those developments is very good. One of those developments is very challenging. We're not ignoring it.' The most recent budget committed an additional $157m to fight the illegal tobacco trade, which was on top of the $188.5m over four years to border enforcement. Tobacco excise revenues are expected to drop from $9.7bn in 2023-24 to $6.7bn in 2028-29, according to the budget papers.
