Tobacco prices tempting thieves to strike
As the country copes with a spike in aggravated robberies, a leading tobacco company says tax hikes are making their products an ‘‘increasingly valuable and lucrative target for crime’’. British American Tobacco New Zealand (BAT NZ) revealed ongoing tax impositions on tobacco items would continue to see them raise prices on their products. BAT NZ is one of the country’s major suppliers of cigarettes and tobacco, alongside Imperial Tobacco New Zealand and Philip Morris International. A BAT NZ spokesperson said the company shared concerns over the increase and severity of robberies, break- ins and thefts from retailers reported around the country.
As a result, the spokesperson said the company was working with retailers and police to ‘‘clamp down on crime’’ and provide secure tobacco units.
BAT NZ also welcomed the $1.8 million the Government recently announced to fund 50 per cent of the cost of security systems for small businesses following the country-wide crime spree.
Automated cigarette dispensing machines could be a solution to the security of a shop’s products but BAT NZ trials are ongoing.
Tobacco products currently fall under the 10 per cent GST increase as well as an annual Consumers Price Index (CPI) excise.
On average, the Government’s excise and GST makes up about 75 per cent of the retail price on a pack of cigarettes, according to BAT NZ.
In 2012, the average pack of 20s was about $14.50. That same packet now costs $23.40, which is a 60 per cent increase in five years.
The company’s concern over criminals targeting tobacco products comes as a group of health experts made suggestions to the Government to drastically increase taxes on tobacco products to achieve its Smokefree Aotearoa 2025 campaign.
MPs were given suggestions to increase tax on cigarettes by 20 per cent annually for three years, and imposing a minimum tax.
Other strategies looked to end the duty-free allowance and adding a one-off 15 per cent tax on roll- your-own cigarettes, on top of the proposed total tax increase.
Police national prevention manager Superintendent Eric Tibbott said the recent upward trend in aggravated robberies was unacceptable.
Tibbott said police data showed dairies and superettes across the country were targeted by aggravated robberies more than any other business type, and needed added security measures.
He said dairies and superettes were less likely to have CCTV installed, audible alarms, and adequate lighting in place.
‘‘These business also tend to have less support and are not as financially able to take preventative action as larger retailers or chain businesses.’’
He said nationwide, police would work with business associations, store owners, and local councils to change environments and reduce the likelihood of crime.