25 Jul 2012

Tobacco industry mistrusted over excises

12:33 pm on 25 July 2012

Anti-smoking groups have told MPs that the tobacco industry is likely to undermine tax increases which aim to discourage smoking.

The Finance and Expenditure Select Committee is hearing submissions on a bill which implements the Government's excise increases announced in this year's budget.

Under the legislation, the excise tax will increase by 10 percent a year at the beginning of each of the next four years, in addition to the annual inflation-indexed increase.

The of ASH director Ben Youden, told the committee on Wednesday morning that a factor they have to consider is the tobacco industry's ability to undermine excise increases with pricing strategies.