AACS: GETTING HONEST MIGHT BE BETTER THAN GETTING SERIOUS

MEDIA RELEASE
July 31, 2013

The Australasian Association of Convenience Stores (AACS) today vented its frustration over the Government’s constant attempts to plug its budget hole with yet another increase in tobacco excise.

AACS Chief Executive Officer Jeff Rogut said that while the health issues around smoking were well recognised, the government was simply using this as a cynical smokescreen for revenue-raising.

“Raising tobacco excise has become a default answer to filling budget shortfalls and that it not only represents short sighted, lazy and uninspired economic management, it’s also having zero impact on improving health outcomes and a very negative impact on small business,” said Mr Rogut.

Then there are the consequences for small retailers as well as those consumers who choose to smoke to consider.

“The negative impacts these constant tax hikes are having on a small section of the community, most notably those consumers who choose to smoke and the retailers who responsibly sell this legal product, is increasing in severity,” Mr Rogut said.

“It’s got to the point where we are calling for more than just a fair go for retailers. The discrimination that’s occurring by Government time and again targeting a small section of the community as the answer to the country’s larger budgetary problems has got to stop,” he said.

Mr Rogut said retailers operate at the coal face of these changes and can therefore provide a uniquely accurate picture of the impacts of new taxes as they apply to tobacco.

“When tobacco excises are lifted the response from consumers is typically to shift their preference to a cheaper brand, which is potentially a more attractive option anyway now plain packaging is in operation,” Mr Rogut said.

“Additionally, another increase could be expected to further stimulate the market for illicit tobacco, leading to a loss of income for legitimate retailers and reduced revenue for Government.

“To slug retailers and consumers with another tax increase would represent ill considered, knee jerk policy that could have serious unintended consequences, all the while generating absolutely no improvement in health outcomes. We strongly urge Treasury to look beyond this short sighted tax increase in seeking to address any budget shortfall,” he said.

Further information:
Jeff Rogut
Chief Executive Officer
Australasian Association of Convenience Stores
Ph: 0467 873 789

Media enquiries:
Trudy Wise
Wise McBaron Communication
Ph: (02) 9279 4770