Cut ciggie tax, Leyonhjelm urges govt

NOVEMBER 25, 2014
NEWS.COM.AU

Cigarettes.
Tax cuts are the answer to illegal tobacco sales, independent senator David Leyonhjelm says. Source: AAP
THE federal government must slash the tobacco excise to crack down on sales of blackmarket cigarettes, independent senator David Leyonhjelm says.
AUSTRALIA’S major tobacco companies have released a report into illicit tobacco products which claims their share of consumption has increased from 13.5 per cent to 14.3 per cent in 12 months.
The firms – British American Tobacco, Philip Morris and Imperial Tobacco – say the illegal market is costing taxpayers about $1.2 billion annually.
The trio called on the federal government to better resource law enforcement agencies to combat the problem – which they say is the equivalent of 156 million packets of 20 cigarettes a year.
But Senator Leyonhjelm says law enforcement isn’t the answer.
Instead, tobacco excise should be slashed.
The government had created a “magnet” for organised criminals, he said.
“The best way to deal with them is not by law enforcement because all we end up with is more police running around in black pyjamas and guns and jumping out of helicopters,” the libertarian senator said.
Senator Leyonhjelm has promised to stick up for smokers, who he says contribute $8 billion annually in cigarette tax but only cost the taxpayer $320 million in healthcare costs.
While he happily accepts donations from the tobacco industry, he doesn’t smoke.
“I encourage people not to smoke (but) I respect their right to choose for themselves,” he said.