Taxpayers’ Union Questions Tobacco Tax Hikes

May 30, 2016 New Zealand Taxation

The Taxpayers’ Union is calling on the government to look at legalizing e-cigarettes instead of just unfairly raising taxes on tobacco.

Late last week the Taxpayers’ Union issued a press release calling the government’s latest round of tax hikes of tobacco products “morally questionable”.

The government has announced that each year until 2020 the tax on tobacco products will rise by 10 percentage points.

In its press release the Taxpayers’ Union claimed that smokers already pay enough tax on their purchases to cover their own smoking-related healthcare costs three times over.

It was also added that often the people who are paying a large portion of the taxes on cigarettes are low-income individuals who are least able to afford the rising costs.

As an alternative to the tax hikes, the Taxpayers’ Union asked why the government has not sought to reduce smoking rates by legalizing and encouraging the use of e-cigarettes as a cessation method.

Photo By: Marius Mellebye / 276ccm