BREAKING NEWS: In a shock move, the Government has this evening taken parliament in to extraordinary urgency to pass a bill increasing tobacco excise tax by more than 33 percent over two years.
Tax on roll-your-own tobacco will also increase by 50 per cent over two years.
The Government expects the Bill will be passed into law tonight.
"The move will put the price of cigarettes and roll-your-own tobacco up enough to save hundreds of lives," said Associate Minister of Health Tariana Turia.
The bill pushes the excise tax on tobacco up in three steps over two years. It is proposed that the excise on cigarettes will rise immediately by 10 per cent with a further 10 per cent increase next January and a third increase of 10 per cent in January 2012.
There will also be a 24 per cent increase in the excise tax on loose tobacco followed by 10 per cent increases in 2011 and 2012, adding up to just over 50 percent over two years.
"We know that putting up the price is a powerful tool to reduce smoking," Mrs Turia said.
"It forces people to cut back, but more importantly it provides a strong incentive for smokers to quit and helps dissuade young people from ever starting to smoke."
Mrs Turia said the changes represented a huge investment in the future of the country.
Helping smokers to quit was a priority of the Government and a health target.
When passed into legislation tonight, the price increases will take immediate effect.
Mrs Turia has just finished her first speech commending the bill and Labour's health spokesman Ruth Dyson has indicated the opposition will support it as "a huge step forward".
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great now tomorrow I'm gona have a whole bunch of angry retailers demanding to know why I didnt tell them this was coming.... thanks john. but then again it is probably a good thing for the company cause it means that retailers cant by up large and make extra profits haha
Tax on roll-your-own tobacco will also increase by 50 per cent over two years.
The Government expects the Bill will be passed into law tonight.
"The move will put the price of cigarettes and roll-your-own tobacco up enough to save hundreds of lives," said Associate Minister of Health Tariana Turia.
The bill pushes the excise tax on tobacco up in three steps over two years. It is proposed that the excise on cigarettes will rise immediately by 10 per cent with a further 10 per cent increase next January and a third increase of 10 per cent in January 2012.
There will also be a 24 per cent increase in the excise tax on loose tobacco followed by 10 per cent increases in 2011 and 2012, adding up to just over 50 percent over two years.
"We know that putting up the price is a powerful tool to reduce smoking," Mrs Turia said.
"It forces people to cut back, but more importantly it provides a strong incentive for smokers to quit and helps dissuade young people from ever starting to smoke."
Mrs Turia said the changes represented a huge investment in the future of the country.
Helping smokers to quit was a priority of the Government and a health target.
When passed into legislation tonight, the price increases will take immediate effect.
Mrs Turia has just finished her first speech commending the bill and Labour's health spokesman Ruth Dyson has indicated the opposition will support it as "a huge step forward".
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great now tomorrow I'm gona have a whole bunch of angry retailers demanding to know why I didnt tell them this was coming.... thanks john. but then again it is probably a good thing for the company cause it means that retailers cant by up large and make extra profits haha