Budget 2016: Cristopher Pyne talks up tobacco tax

THE AUSTRALIAN
APRIL 15, 2016
Christopher Pyne said reducing the rate of smoking reaped savings across the public health system, as fewer Australians present with smoking-related diseases.
Industry Minister Christopher Pyne has spruiked the economic windfall from levying “very high” tobacco taxes, amid speculation that Treasurer Scott Morrison’s budget will target smokers.
Labor is framing the budget fight as a debate over “choices” as he offers more spending on schools but also plans tax increases to raise $105 billion over 10 years, including $47.7bn by raising the price of cigarettes to $40 per 25-pack by 2020.
However the policy has been criticised by both Labor MPs — who fear the impact on poorer Australians, who are more likely to smoke — and Tony Abbott, who lashed the policy as a “workers’ tax” that could deprive seniors of one of their few pleasures.
Mr Morrison yesterday flagged “revenue measures” in the budget aimed at “reducing the tax burden in other parts of the economy, and wherever possible to continue to drive down the deficit”.
Mr Pyne, interviewed on the Nine Network, said reducing the rate of smoking reaped savings across the public health system, as fewer Australians present with smoking-related diseases.
“We have very high tobacco taxes, but we also have found … one of the most significant ways to reduce health costs is to reduce the number of smokers — it makes a direct impact on the cost of health to the rest of the community,” Mr Pyne told the Nine Network.
Mr Pyne touted his credentials on health policy, noting he was assistant health minister in 2007, but insisted he was not ruling the tax hike in or out.
Opposition treasury spokesman Chris Bowen last night seized on speculation that the budget would hike the tobacco excise.
“The government, after having complained about our policy, has now today pretty clearly indicated they’ll be in the same space on election day,” he told ABC TV.