The Australian government decided to increase tobacco tax by 25 percent starting with midnight. A national lobby group declared that this legislation will hurt especially small businesses.

Kevin Rudd, Prime Minister notified that he would sustain the new changes to midnight, after being informed all tobacco users. “Because of media theory about the excise taxes in recent days, there was a real interest about modifications to tobacco consumer and the significance of acting right now,” Mr. Rudd said. He added also that this decision had been brought forward on recommendation from the Tax Office. This rise will add approximately $2.16 to a pack of 30 cigarettes and produce an additional $5 billion over four years, which the government promised to provide in hospitals.

But the Council of Small Business of Australia (COSBOA) declared that the new tax increase, accompanying with the launch of plain cigarette packaging, was an error.

Jaye Radisich, chief executive also explained that while the council accepted harsh tobacco control legislations, interdictory pricing and identical packaging was not the only solution. “Since tobacco is legal to sell, the purchase and even the consume, and small businesses should not be penalized for selling it,” he added.

In general this tax hike means that tobacco customers will have less money for to spend them even on non-tobacco products, so the government new decision will increase the country income but unfortunately the tobacco products sales will drop in small shops. “Already small businesses are hit very hard from tobacco display bans executed in some administrations, which have imposed high prices on small businesses for to alter their fixtures and depository areas as a result of the new legislations,” said Jaye Radisich.

Because of this new tax hike the consumers which want to find lower prices would be driven to larger shops such as Coles and Woolworths instead of small tobacco stores.

Health Minister Nicola Roxon said that the Tax Office was already supervising cigarette exits for any signs of storage among consumers in our days. “The Tax Office will be take new steps if there is any sign of accumulating between the public statement to be made and the time at which it will begin,” she reported.

Soon, government will announce to all inhabitants that their usual packet of 30 cigarettes will cost $2 or so extra as a result of these all changes. And it hopes that because of this law the community will start to think about quitting smoking.

By Sara Norton, Staff Writer. Copyright © 2010 Cigarette-Store.org. All rights reserved.