Tax increase on rollies to rake in $360m
Smokers who roll their own cigarettes will be slugged more for tobacco products.
Anti-smoking advocates are happy with the tax increase, which they say will lift the price of 50g bags of tobacco by up to $8 over the next four years.
The Government is raising taxes on roll-your-own tobacco and items such as cigars to bring rollies in line with tailormade cigarettes.
The measure is expected to rake in $360 million over four years, including an extra $35 million in GST revenues.
The increases, starting in September, will coincide with 12.5 per cent tobacco tax hikes.
There will also be a new levy on avocados, but it’s unlikely to hitch up prices paid at the shops.
The Government in April introduced a 0.1¢ per kilogram levy on fresh avocados to support biosecurity management for the industry.
But there’s a corresponding reduction in the existing avocado research and development levy, down from 3¢ per kilo to 2.9¢.