Government losing millions due to foreign cigarettes

The New Zealand Government is losing up to $89.1 million per annum in tax revenue due to tobacco brought in to the country from overseas, ASPIRE 2025 researchers estimate. The figure is based on new research published in the New Zealand Medical Journal from a study involving the collection of discarded cigarette packs. ASPIRE 2025 Co-Director Professor Richard Edwards commented that much of the lost revenue is likely due to duty-free imports, and as it doesn’t include cigarettes purchased duty free by arriving passengers at New Zealand airports, the figure is likely to a be a conservative estimate of lost revenue. He noted that the availability of cheap duty free tobacco products undermines the impact of tax increases and the ability to achieve the Government’s goal of a smokefree New Zealand by 2025. “Tobacco excise increases are highly effective at encouraging smokers to quit and discouraging children from starting to smoke. Duty-free tobacco imports undermine this by making cheap cigarettes available to smokers and to children who, as a result, may be more tempted to try smoking,” Professor Edwards says.

http://www.otago.ac.nz/news/news/otago059906.html