New website promises packs of cigarettes for HALF-PRICE – and they claim what they're doing is 100% legal

ADAM MCCLEERY
11 September 2018
DAILY MAIL AUSTRALIA

Australian website offering tobacco as low as half the price offered by retailers 

• RYO Solutions Australia claim to offer a legal way to save money on tobacco 
• Australian smokers just had their sixth annual tax hike of an eight year initiative

An online retailer is promising cigarettes for up to half the price offered by retailers and claim their service is 100 per cent legal.

The website RYO Solutions Australia has cropped up online offering tobacco for much less than the recommended retail price after Australian smokers were hit with another tax hike on September 1.

Australians already pay the most in the world for their tobacco products, selling for up to $40 a pack, prior to the most recent tax hike.

Now RYO (roll your own) Solutions is claiming to offer a way for smokers to save on their tobacco

Now RYO (Roll Your Own) Solutions is claiming to offer a way for smokers to save on their tobacco.

‘The proprietor is a former tobacco industry executive, who is acutely aware of the financial hardship imposed on smokers and their dependants,’ the website states.

The website offers a range of products and rolls the tobacco prior to sending it to the customer, claiming this helps limit the cost.

The price of tobacco has continued to rise after a former government, and subsequent governments, enforced the annual tobacco excise increases of 12.5% over an eight year period.

This year is the sixth year of the rate increase, which occurs every September.

‘In a further strategy, the cost of RYO (roll your own) Tobacco is being ‘equalised’ relative to tailor (factory) made cigarettes, meaning that an RYO cigarette using 7 grams of tobacco costs the same as a tailor-made King Size cigarette,’ the website states.

The price of tobacco has continued to rise after a government enforced annual tobacco excise increase of 12.5% over an eight year period

The website also outlines how its business model remains legal.

‘We use only legally purchased, duty paid RYO tobacco,manufactured by Philip Morris, British American Tobacco and Imperial Tobacco – all purchase records and original RYO packaging is retained and available for inspection,’ it states.

For example, a 20 packet of Winfield cigarettes will cost an Australian consumer around $30, while RYO Solutions sells them for around $14.

The Australian Government first introduced the recurring excise as a means of curving the smoking habits of Australians.

‘Increasing tobacco prices, through taxation, is one of the most effective measures to reduce smoking. In April 2010, Australia introduced a 25% increase in the tobacco excise and excise equivalent customs duty,’ a government statement read.

Website RYO Solutions Australia has cropped up online offering tobacco for much less than the recommended retail price after Australian smokers were hit with another tax hike (stock image)

‘Australia is the only country in the world to index tobacco excise to wage inflation average weekly ordinary time earnings to ensure that tobacco products do not become relatively more affordable over time.’

According to the Australian Bureau of Statistics, the total consumption of tobacco equaled $3.415 billion in March of 2017.

By the end of 2016, four years into the recurring excise, tobacco clearances had fallen a total of 16.5% since 2012, when it was a total consumption equaling $4.712 billion for December 2012, thus indicating the tax excise has indeed stopped a number of people from smoking.