Tobacco tax hike needed to boost quit rates
The Heart Foundation has today called on the Australian Government to end a decade of neglect and increase tobacco tax to drive up quit rates and boost funding for disease prevention, particularly for those in lower socio-economic groups.
Addressing the National Press Club in Canberra recently, the Heart Foundation’s National CEO, Dr Lyn Roberts, said tobacco tax had not been increased in real terms for almost a decade despite WHO recommendations of real increases of at least 5% annually.
“Despite a decline in smoking in recent years, it remains the leading single preventable cause of ill-health and death in Australia, responsible for 7.8% of the total burden of disease and injury,” Dr Roberts said.
“Three million Australians are still daily smokers, an activity that causes 15,500 deaths a year and costs the community an estimated $31.5bn annually.
“Price increases are one of the most effective best ways of encouraging smokers to quit as well as deterring young people from starting.
“And yet – apart from CPI increases – we haven’t seen a real increase in tobacco tax since November 1999.
“The Heart Foundation, Cancer Council and ASH (Action on Smoking and Health) are calling for a tobacco tax increase of 7.5 cents per cigarette (a 21% increase in the price) as an interim measure towards matching the far higher and more effective excise regimes in OECD jurisdictions such as France, Ireland and the UK.
“A 7.5 cent per cigarette tax increase would deliver an additional $1.03 billion a year in federal revenue – funds that should be used to boost disease prevention.
“Evidence shows a 7.5 cents tax increase would prompt 130,000 Australian adults to quit and prevent 35,500 children from taking up smoking.
“The majority of these people will otherwise die prematurely from illnesses including cardiovascular disease and cancer.
“As the joint Heart Foundation-Cancer Council submission to the Henry Tax Review makes clear, research shows tax increases are particularly effective in encouraging blue collar workers to quit smoking and are supported by the majority of smokers in this group.
“These are the people who continue to bear the brunt of death and suffering caused by smoking.
“The government also need to be reminded that this is one tax that has strong public support. A Newspoll in September commissioned by the Heart Foundation, Cancer Council, ASH and the Public Health Association) showing 88% of Australians support an increase in tax if most of the revenue is allocated to prevention,” Dr Roberts said.
Cancer/Heart tobacco tax submission: http://www.taxreview.treasury.gov.au (See submissions)
