Last month we reported that the Government was considering adopting a version of Labor’s tax hike on ciggies, which could have sent the price of durries up to $40 a pack.
Today, it has become clear that after a lengthy internal battle, the Government has indeed decided to take a tobacco tax hike to the election, meaning that both major parties have it as a part of their tax platform.
Labor Shadow Treasurer Chris Bowen seemed pretty chuffed about the Government’s new platform – and he would be, seeing as it’s basically his policy.
The tobacco tax is seen as an easy way to grab revenue, but opponents contend that it is regressive – hitting the poorest smokers hardest – and, if it actually encourages people to stop smoking, will be a pretty poor longterm tax plan. If smokers stop smoking, they’ll stop paying that sweet tax.
So that’s that. If you’re a huge ciggy-butt brain, your wallet might look a lil lighter post-election.
Source: Sydney Morning Herald.
Image: Getty Images / Cameron Spencer