Australia ups cigarette excise steeply

The Australian government today increased cigarette excise by 13.7 per cent, the second of four big increases that were set in motion last year by the previous government, according to a story in the Whitsunday Times.

The government has increased the excise on a pack of 20 by A$1.12 to A$9.25 and that on a pack of 40 by A$2.25 to A$18.51.

The former Labor government announced in the middle of last year a series of four increases with the first of 12.5 percent on December 1 2013 to be followed by three more on September 1 of each of the following three years.

Australian Council on Smoking and Health president Mike Daube said his organization estimated that about 800 million fewer cigarettes would be smoked in Australia and about 60,000 smokers would quit their habit just as a result of the latest increase.

Cancer Council Queensland spokesperson Katie Clift said price control through excise was the most effective public health measure to bring down smoking rates.

“Research shows the tobacco excise increase in 2010 caused smoking rates to decline by about 11 per cent,” Clift said.