NZ Government Shifts on Excise Tax

New proposals have been presented under the Smoke-free Aotearoa 2025 Action Plan document to combat tobacco smoking in New Zealand. The NZ government has for years relied on increased excise taxes to help discourage smoking. The intention had been for smokers to see the rising cost and opt to curtail their habit. In reality, the high taxes imposed a heavier burden on low-income households. They have not helped people to quit but rather made the situation tougher for smokers struggling with the addiction.

In a bid to create a smoke-free generation, the government is instead looking to ban the sale of tobacco to anyone born after 2008. To ensure this ban lasts a lifetime, the law will progressively lift the smoking age from 18 years by one year, every year, from 2027. The law will prohibit shops from selling or otherwise supplying tobacco products to youth that fall under this category. Should the law be enacted by next year, children under the age of 14 will not be able to legally access tobacco products for the rest of their lives.

According to Associate Health Minister, Dr Ayesha Verrall, the government is expected to introduce and enact this legislation next year. This proposal is expected to help reduce the prevalence of smoking in the country to less than 5% by 2025. Smoking has been identified as a leading cause of death in New Zealand. It is responsible for killing as many as 4,500 people a year, which accounts for an estimated 15% of all deaths.

Besides sales, the government also intends to have the level of nicotine in tobacco products reduced and introduce a prohibition on filters in cigarettes. Currently, tobacco products can be sold through just about any outlet including supermarkets, convenience stores, on-licensed premises, and service stations.

The proposals also include recommendations to have tobacco retailers restricted based on population density or allowing the creation of specialist tobacco stores. These actions would restrict retail availability and hopefully curb the harm caused by these harmful products. Health Coalition Aotearoa’s chairman, Professor Boyd Swinburn, hopes that the proposals will help small businesses like dairies transition away from tobacco retail.

There are however some that do not support the proposals, saying they would only make it harder for smokers to afford their habit. ACT Party’s Karen Chhour confirmed she was a former smoker and did not appreciate the government’s attempts at socially engineering behaviour. She added that these moves would bolster the black market trade in tobacco products with high nicotine content.

The government is calling on members of the public and businesses that may be affected to give their views on these proposals.

 


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