NZ Govt likes smokers…..

Charming!!! But true……………Lets not be one of them……….

A Treasury report has admitted that smoking saves the Government money because smokers die earlier and pay more in tobacco tax than their health problems cost.

The regulatory impact statement on tobacco taxes prepared ahead of the Budget said smokers’ shorter life expectancies reduced the need for superannuation and aged care.

“When the broader fiscal impacts of smoking are considered … smokers are probably already ‘paying their way’ in narrowly fiscal terms.”

In last week’s Budget, Associate Health Minister Tariana Turia introduced tobacco levies that will increase the price of a 20-pack of cigarettes to more than $20 in four years.

The charges would increase the Government’s tax take from tobacco from $1.3 billion to around $1.7 billion by 2016.

The Treasury document acknowledged that the revenue gathered in tobacco taxes already exceeded the health costs of smoking.

A University of Otago study in 2007 estimated that the direct cost of smoking to the Ministry of Health was $300 million to $350 million.

The Treasury cited a Ministry of Health study that estimated the indirect health costs of smoking at $1.9 billion, but acknowledged the figure had been disputed and was far higher than previous estimates”.

For the remainder of the article…

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10809145

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s